Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 12-10-2014, 01:29 PM
Junior Member
 
Join Date: Dec 2014
Posts: 1
Minimum Required Distribution

I turn 70 in February 2015. Should I be doing anything with my traditional IRA's before 12-31-14?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 12-10-2014, 02:24 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by Gene View Post
I turn 70 in February 2015. Should I be doing anything with my traditional IRA's before 12-31-14?
no. Tax law requires ira holders to take out at least minimum amounts from their accounts once they reach age 70½ at which time the IRA owner may distribute the full balance of the IRA or distribute a minimum amount each year. Technically, that means the IRA money must start coming out in specific increments no later than April 1 following the year you reach that age, 70.5, I mean.
To calculate the year's minimum distribution amount,you need to takeyour age on Dec. 31 of that year and find the corresponding distribution period. Distributions that occur on or after you reach age 59.5 may be subject to income tax but will not be subjected to the early-distribution penalty.so, the first RMD must be distributed by Apr 1 of the year after the year in which you reach age 70.5. For example, an IRA owner who reaches age 70.5 in Aug of 2014 must take his or her first RMD by April 1, 2015. IRA holders who elect to have a minimum amount distributed each year must, for subsequent years, distribute RMDs by Dec 31 of each year. This means that if you defer the first RMD until April 1 of the year after you turn 70.5, you will be required to take a second RMD amount in that same year, which counts as the second year for RMDs. IRA distributions cannot be deferred indefinitely. Generally, the IRA custodian/trustee will calculate the RMD amount and send the notification to you.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
What are Required Minimum Distributions? TaxGuru IRA/Sep 0 02-18-2013 05:40 PM
What are the Required Minimum Distribution rules for beneficiaries of retirement accounts? TaxGuru IRA/Sep 0 12-20-2011 11:33 AM
What is the penalty for failure to comply with the Required Minimum Distribution? TaxGuru IRA/Sep 0 12-19-2011 09:59 PM
What is the Purpose of the Required Minimum Distributions (RMD)? TaxGuru IRA/Sep 1 12-19-2011 09:53 PM
IRS Issues Guidance on 2009 Required Minimum Distribution Waiver Samatg Tax News 0 09-24-2009 02:29 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.