Community Chat

[151949]

I tried to look this up on the government's website but all the calculators were too confusing for me. Can someone explain this to me? When you turn 70 1/2 you are required to take at least 3.7% of your IRA each year - is that correct? And does it count the money you earn with your investments or just the money you initally deposited? I think it is everything but DH thinks someone told him it is just from the initial deposit. So - if you have $500,000 as your initail deposit - then you are making profits of say $20,000/year does the 3.7% apply to the 500,000 or the 520,000 ? I assumed it was the total because you didn't pay tax on the $20,000 yet either and this is what it's all about - paying the taxes on that income.