Year-end tax deadline looms for retirees | Reduction

Year-end tax deadline looms for retirees

Excerpt:

(MoneyWatch) If you're age 70-1/2 or older and have savings in deductible IRAs, deductible 401(k), Roth 401(k), or 403(b) or 457(b) accounts, then by December 31 you'll need to withdraw what is known under the law as a required minimum distribution (RMD). Any amount you fail to withdraw to meet the RMD is subject to a 50 percent tax, so you don't want to miss this deadline. According to Fidelity Investments, as of November 9 nearly two-thirds of the investment firm's IRA customers who are required to take RMDs for tax year 2012 have yet to withdraw the full amount. Additionally, 54 percent haven't taken any of their RMD to date for the year. With 2012 drawing to a close, it's a good time to review some of the basic rules regarding RMDs. Roth vs. traditional IRA: Which is better? Could the "fiscal cliff" raise taxes for retirees?

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Pension Taxation in the United States Tax Retirement Withdrawal Roth IRA Irish Republican Army If You Have to Ask

Year-end tax deadline looms for retirees

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Organization: RMD

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You could be hit with a large penalty if you don't comply with the required minimum distribution rules for those over age 70-1/2

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Year-end tax deadline looms for retirees

Webpage Provided Keywords:

• 401(k)
• 403(b)
• 457(b)
• ira
• minimum required distribution
• mrd
• required minimum distribution
• rmd
• Steve Vernon

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