Annual rates of return can vary significantly and will depend upon your asset allocation and other variables. Historically, higher rates of return have been associated with higher degrees of risk.
If the IRA holder turns 70 1/2 this year, he can defer his first distribution until April 1 of the next year. If he is older, he would normally be required to take his RMD before December 31 of this year. However, recent legislation allows account holders to skip their 2009 RMD. in any case, RMDs are considered taxable income for the year in which they are taken.
Do not include income from your own retirement savings, such as IRAs or 401(k) plans. If you are unsure how much you may receive in pension benefits from an employer plan, speak with your human resources department.
Remember to include your tax-deferred employer-sponsored retirement savings plan balances as well as any other retirement savings.
Your Social Security benefits are based on your earnings history, and your spouse's benefit is the higher of 1/2 of your benefit or your spouse's actual benefit. To check your current projected benefit, check your annual Social Security statement or contact the Social Security Administration at 1-800-772-1213.