In Brief: Jan. 29, 2001

PENSION BREAK Why is the IRS simplifying the Byzantine rules that govern how much money retirees need to take from their pension fund each year? To be nice. And to ensure that they pay taxes on money from an IRA, 401(k) or other plan. Retirees must now calculate and report to the IRS a yearly minimum. But the new rules should also lower the withdrawal, and hence the tax paid.

Required minimum IRA distributions Calculated on $100,000

Minimum Remaining Age Divisor Withdrawal Total

70 26.2 $3,816.79 $96,183.21 71 25.3 3,801.71 92,381.50 72 24.4 3,786.13 88,595.37 73 23.5 3,770.02 84,825.35 74 22.7...

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