savings-investing

When can I use my retirement savings?

We’re all living longer lives, which means we’ll need a bigger pot of savings for retirement. If you can delay taking your retirement savings and social security as long as possible, it will help stretch your savings to later years.

The legal requirements. You can start taking money out of your Icon IRA at age 59 1/2 without paying the 10% penalty.

But at age 70 1/2, the IRS requires you to start taking minimum distributions (RMDs) from your IRA each year. This rule does not apply to a Roth IRA. You will also have to pay income taxes on the withdrawn amount since contributions to your IRA were made pre-tax. 

Calculating RMD’s. The RMD for each year is calculated by dividing the IRA account balance as of December 31 of the prior year, by the applicable distribution period or life expectancy. You can find more details on RMD’s by going to the IRS website: https://www.irs.gov/publications/p590b#en_US_2017_publink1000230736

A note about social security. The longer you can wait to take social security, the larger your monthly amount will be. Some experts recommend waiting until you’re 70 to help maximize your benefit.

To make changes to your Icon retirement plan go to click here.

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