My husband will be 72 in August and is now being required to take a mandatory withdrawal from his annuity. My question as this will also affect me next year is: What should we do with that money? Would a savings account, CD or money market or what be the best place for this money. We have no choice in this matter and must also pay taxes on the required withdrawal. Do you have any suggestions as this affects anyone who reaches the age of 70.5
Terry Says: I’m assuming that you purchased the annuity with money in your IRA. Otherwise, there would be no required withdrawal — although it might be a good time to start withdrawals anyway! You have a wonderful problem! First, you can spend it! I’m serious here — this is money you put aside for your retirement, and it’s yours to enjoy (after you pay taxes on it). But presuming that you have more than enough other income, perhaps from pensions or other IRA required withdrawals, or just from saving — then don’t take any unnecessary risks with it. Just put it in a bank money market and save it for emergencies.