Excerpt
from a TIAA CREF letter :
BEFORE...
If you turn age 701/2 this year, federal minimum distribution rules
generally require that you receive some income from your retirement
plan accumulations by April 1 following the year you turn 701/2
— April 1, 2007 — or the April 1 after the year you retire,* whichever
comes later. Although April 2007 is the deadline, you can receive
your minimum distribution in 2006. If you wait until 2007 to receive
your minimum distribution for 2006, you will receive two payments
in 2007. One payment will satisfy the minimum distribution requirement
for 2006 and another payment will satisfy the 2007 requirement.
You must also begin receiving income by April 1, 2007, regardless
of your employment status, from any accumulations in TIAA-CREF’s
Traditional IRAs or other companies’ traditional IRAs, or from
qualified plans (including Keogh plans) if you are a 5% owner of
the plan. If you turned age 70 1/2 before 2006, you must receive
enough income by December 31 of each year to satisfy minimum distribution
requirements. Keep in mind, even if you have already received some
income from your TIAA-CREF accumulations this year, you may need
to take an additional distribution... |
AFTER...
We are writing to you because you are subject to the minimum distribution
requirements of the Internal Revenue Code. Under these rules, once
you turn age 70.1/2, you must receive some income from your accounts
each year. Since you are or will be 70 1/2 or older this year,
you need to receive at least a minimum amount of income. The following
shows when you need to receive this income based on your age:
If you turn 70 1/2 in 2007
Your minimum distribution income
must begin by April 1, 2008
If you turn 70 1/2 in 2006 or earlier
Your minimum distribution income
must begin by December 31, 2007
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BEFORE and AFTER PDF
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