There is no need for your grandparents to pull money out of their retirement accounts now (it’s probably gone anyway).  If your granny is at least 70.5 years old, then she is REQUIRED to pull money out of her retirement account… until now.

The Worker, Retiree and Employer Recovery Act of 2008, passed on December 11, 2008, has set aside the requirement for those who have reached the age of 70.5 to pull a minimum distribution out of their retirement accounts.  Under the previous law, if you decided NOT to pull money out of your retirement account, then you would be pummeled with a 50% excise tax on the amount you should have taken out of your account.

Now all that has changed because Congress truly cares about us all (you gotta love Chairman Rangel – D-NY).

Thanks, Jason M. Blumer

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