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This is Patrick Munro, Financial Adviser talking about IRS Contribution age limits. An IRA
is an individual retirement account set up by the Internal Revenue Service, for the purpose
of growing your money in a qualified tax plan. The money that you put in under government
guidelines is tax deferred until you take it out. There are certain ages to be aware
of, and it's important that at your earliest opportunity to make sure that you have a chance
to invest in one of these valuable retirement accounts. The first age that comes up is age
eighteen, that's the first age when you're able to, as a new adult place money in, usually
through a job, and as you have your annual contributions, whatever they are based on
your taxable income, you'll receive a deduction on your taxes, for the money that you've put
away, so make sure that you maximize your contributions. Once you hit fifty nine and
a half, which is a retiring age, you're able to take some of this money out, without a
penalty. However, many people don't take the money out at fifty nine and a half, and rather
want to make it grow even further into retirement. But, when you reach age seventy and a half,
the IRS shows up, and it's a required minimum distribution time, RMD is applied onto your
IRA, and it is a formula that you have to spend down your money, if you do not spend
it down at seventy and a half, there will be a fifty percent penalty, for every year
you do not do so. So, it's important to work with a financial adviser that is a Retirement
Distribution Product Manager and that's what I do here at Norstar Financial. This is Patrick
Munro talking about the various age limits on IRA's.