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| | Ira Distribution Rules Simplified (Site not responding. Last check: 2007-10-14) |
 | | The Old Rules detailed calculation methods based on your decision to recalculate one or both life expectancies, and your distribution varied with your age and the age of your designated beneficiary. |
 | | Most 70 year old IRA owners named their close-in-age spouses as their beneficiaries (or named no designated beneficiary) and had to use a smaller "divisor" (e.g., 19.6 years for a 70-year-old participant and same-age spouse), resulting in a relatively larger RMD, less income tax deferral, and, ultimately, less money for old age or for heirs. |
 | | For example, if you have an IRA balance of $100,000 at age 70½, live to age 85, and achieve an average annual return of 8.5%, the value of the IRA at your death would be approximately $150,000 (after taking into account total distributions during your life of approximately $113,000). |
| www.rutherfordmulhall.com /irarules.htm (1302 words) |
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