- quote -

Thanks, Herb, Bill, and Chris!

Don

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DonC wrote:

- quote -

The two accounts are treated separately, she starts required
distributions in 5 years.

My unsolicited JoeTaxpayer suggestion;
If her withdrawals now will not push you into a higher tax
bracket, take that ammount to 'top off' your current bracket
and convert it to a Roth IRA.

For example, if in 2006 you find your AGI at $50,000
(including your IRA withdrawal). The 15% bracket ends at
$61,300 for Joint ret. The additional $11,300 will be taxed
at 15%, and never taxed again. This money will not be
considered part of her balance when she calculates her
distribution. You may take it out in later years, as you
wish. In my scenario you'd have converted over $55,000 plus
earnings to avoid the bracket crossing.

JOE (joetaxpayer at earthlink dot net)

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DonC wrote:

- quote -

You are correct that you would use Table III from
Publication 590 to compute your minimum IRA distributions
when you reach age 70 1/2.

Your wife, will also use the same table, but she does not
need to start taking distributions from her IRA until she
reaches age 70 1/2. You do not use the value of her IRA
when computing the amount of your required distribution.

--Chris Ballard

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coondwc_nospam[at]hotmail.com (DonC) wrote:

- quote -

Correct.

- quote -

She should begin in the year she reaches age 70 1/2. Except
for the "Table option in Appendix C" for your own RMD
calculation, these are _Individual_ Retirement Accounts.

Bill

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DonC wrote:

- quote -

That is correct.

- quote -

Your IRA is yours, and her IRA is hers. They are NOT a joint
asset and are never considered together (except after death
of one spouse). She begins taking RMDs when SHE turns
70-1/2, based solely on her IRA balance.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

My wife is 5 years younger than I am.

When I reach 70 1/2, I understand that I must begin taking
minimum distributions using Table 3 since she's less than 10
years younger.

She also has an IRA but she's 65 1/2. Does she begin taking
minimum withdrawals 5 years from now or do we have to
include her IRA when I reach 70 1/2?

Thanks

Don

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >