The purpose of an IRA is to provide retirement income. Therefore, when you reach age 70 1/2 you must begin withdrawing the proceeds in your IRA. If you don't withdraw the minimum amounts yearly, a 50% nondeductible tax is levied on the amount of the minimum payment left in your IRA.

If you are fortunate enough to have sufficient income without taking any distributions from your IRA, you may wish to postpone withdrawing money from your IRA as long as possible. Distributions must begin by April 1 of the year following the year in which you reach age 70 ½.

If you are taking the standard deduction, be sure to take advantage of the higher standard deduction for those over age 65 and those who are blind.

Administrative fees paid to IRA trustees are deductible if the fees are billed to, and paid by, the account owner separately from any IRA contribution.

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Last modified February 26, 1999