When Do You Have to Pay Taxes on an IRA Account? Answerd by Orange County Estate Planning Attorney James F. Roberts
For people with IRAs, the government doesn’t allow it to accumulate forever, you have to pay your taxes on an IRA account sometime.
They want you to pay your taxes on an IRA account. so they can get the tax revenue that they didn’t get while you were working. The general rule is at age 70 and 1/2 you have to start taking out your required minimum distribution. There are a few exceptions, such as if you are working for a company, as to the 401k if you are still working for the company you can delay taking the money out, but for the most part at age 70 and 1/2 you have to start taking the money out of your account.
One of the things my firm has done is joined forces with a financial planning firm as well as a tax preparation firm to offer you the best possible options to meet your needs. By joining with these other firms we can ensure that because we each specialize in an area we can stay on top of the very latest changes to the laws and options available to our clients. This way if you have any questions about how to best take out your money, called a required minimum distribution, then we can make sure that we are giving you the best possible information. We are happy to help you meet with any member of either firm to ask questions and find out the best solutions to meet your personal needs.
We are are happy to share the table that shows how the required minimum distribution is calculated. We have that table available to you on our website and we are happy to provide it to you via email if you reach out to us. If you want to see what your required minimum distributions are feel free to contact us or if you need call us we’ll be happy to send it to you make sure that you do take out your required minimum distributions because if your pasted 70 and 1/2 and you are not taking out your required minimum distribution then the government imposes a penalty of 50% taxes on an IRA account, you definitely don’t want that to happen to you.