Asinine! IRS to fine folks 70 & 1/2 that haven't taken money out of 401(K)

http://twocents.lifehacker.com/if-you-just-turned-70-check-your-retirement-account-to-1693150427

Quote :

If you turned 70-and-a-half-during 2014, and have never withdrawn money from your traditional IRA or 401(k), you're about to get fined by the IRS. The fine will be half of what you should have withdrawn. You have until April 1st to avoid it.

The IRS enforces minimum distribution rules that force you to take money out after you reach 70 ½ years of age. This is done in an effort to keep people from never taking money out of a taxable retirement account. If you were born between July 1943 and June 1944, that means you.

Figuring out what you should withdraw gets a little complicated and is based on IRS issued life-expectancy tables. T.Rowe Price has an easy to use calculator to help you determine your required minimum distribution so you can avoid the fine and keep investing.

Don't Get April-Fooled by This Very Costly IRS Tax Trap | Daily Finance

The IRS farmers are anxious to eat the pigs. Like that old joke about the pig with the wooden leg. You can't eat a good hog like that all at one time.

Control is effective ownership.

The law was there when they invested in the IRA, so it's their own fault if they have to pay a fine.. They avoided taxes since the day they made the investment..