I didn’t realize it was mandatory to take money out of my 401k plan at 71 1/2. Now, I find out, at age 71 1/2 that I should have done this. I have about $310,000 in my account, what can I expect to have to withdraw and approximately how much in penalty will I have to pay?
Terry Says: Well, you’ll probably be ok if you act quickly. The MRD rule says you must take money out in the year AFTER you reach age 70-1/2. Talk to your IRA custodian. They will calculate the required withdrawal amount and let you know if there is any tax penalty due. I doubt it — but do this immediately.