Q.How has the law for minimum distributions from retirement accounts changed?

A.Everyone who reaches age 70 1/2 must begin a minimum distribution from their retirement plans. These withdrawals are taxed as ordinary income. This has not changed.

However, the new regulations allow us to take less money out of our accounts over a longer period of time. Rather than the previous 16-year pay out schedule, this year it is increased to no less than 26 years.

Payout periods can be increased further by when beneficiaries are factored into the equation. In addition, beneficiaries can now disclaim a benefit which effectively passes dollars on to the contingent beneficiaries. It is wise to speak with your advisor to learn all the ways these changes may effect your retirement choices.

Q.Should I wait as long as possible before taking out money from my IRA?

A. Retirees are required to begin taking at least minimum distributions from IRA accounts at age 70 1/2. Should you take out more than the minimum? Consider that you worked long and hard for those dollars. They must provide a perpetual income for the balance of your life. So of course we must be responsible when spending those dollars.

However, don't wait too long to take that vacation, purchase a new car or live your dream. Remember what you don't spend in your life, your son-in-law will spend in his!