April 1st is fast approaching and it is a date that often gets overlooked. If you or someone you know is 70 1/2 years young. Read below.
The IRS and Your IRA
The IRS requires you to take a minimum distribution from your total IRA balance by April 1st of the year following your 70 1/2 birthday.
That’s right. April 1st – not the 15th.
The penalty is huge if you mess it up.
Just like many parts of our tax code, this could have been simpler. Here are things to keep in mind:
1) If you have multiple IRA accounts, you can total them up (as of 12/31) and apply the distribution amount to the whole rather than each account. This can really help if investment performance in one account is better than the other. Don’t sell stuff you don’t want to unless you really have to.
2) If you are drawing an income from your IRA nest during the year, you’re probably fine and don’t need to do anything. Just make certain the income amount is equal to or larger than the requirement. It usually is.
3) Roth IRA accounts are exempt. Yes, exempt.
I am heading to Boston next week. Clients should make note of the following:
Email will be read daily.
Voicemail will be checked and calls returned within 24 hours.
Please don’t leave buy or sell trade orders on voicemail.
Matters that are urgent should be directed to my cell:
I will be in on Monday the 7th to complete the tax season and help with last minute items.
Always seek consultation from your tax professional. All of the above is my opinion and should not be construed as individual advice.
Investment advice is offered through
The Linkous Group, Ltd.
A Registered Investment Advisor
Securities offered through LPL Financial
Member FINRA and SIPC