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With 2014 coming to an end, it’s time to review those year-end deadlines for Required Minimum Distributions (RMDs).
If you turned age 70 1/2 before 2014: The deadline for taking the 2014 RMD from your IRA or retirement plan is Dec. 31, 2014. This applies to every traditional IRA owner who reached age 70 1/2 in 2013 or earlier, every qualified plan participant who turned age 70 1/2 and retired prior to 2014, and every beneficiary who holds an inherited IRA (Roth or traditional) or other inherited plan. Review your records and make sure you take the full required distribution before the end of the year to avoid a 50% penalty.
Note: If you are a participant in a qualified retirement plan (such as a 401(k)), and you own 5% or less of the company that sponsors the plan, you can defer the start of required minimum distributions until retirement, even if later than age 70 1/2.
If you turn age 70 1/2 in 2014: You also have a RMD due for the year 2014, but you have a choice: This first year’s distribution can be postponed until as late as April 1, 2015. Your decision to take (in 2014) or postpone (until 2015) this first required distribution becomes irrevocable once the calendar ticks over to 2015, so you should deliberate now regarding which is the better option for you. Keep in mind, if you defer the first distribution until April 15, 2015, your 2015 RMD deadline is December 31, 2015, which means you have two taxable distributions in 2015 (the 2014 RMD you deferred and your 2015 distribution).
These are merely summaries of highly complex tax rules. Please contact TruNorth Capital and/or consult your tax advisor regarding your RMD.
Have a great week!
Disclosures:
All investing is subject to risk, including possible loss of money invested. Past performance is no guarantee of future results. Index performance is not reflective of an actual investment return as you are unable to invest directly in an index.
TruNorth Capital Management, LLC (TruNorth) is an investment advisor registered in, and regulated by, the State of Michigan. All clients and potential clients have access to important information about our business methods, fees, professional qualifications and all other pertinent business information.
TruNorth Form ADV Part 1
Form ADV Part 1 is a regulatory filing that provides the basic business structure of TruNorth and explains how we are legally registered.
TruNorth Form ADV Parts 2A & 2B
Form ADV Parts 2A & 2B provides details of the services we offer as well as the backgrounds of TruNorth's principals. It also includes information about our fees, investment strategies and how we conduct our business. See below to download Form ADV Parts 2A & 2B.
Click here to access Form ADV Parts 1, 2A and 2B from the SEC website. |
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