Entries filed under 'IRA Required Minimum Distributions'

    IRAs: More FAQs about RMDs

    June 23, 2017 11:55 AM by Brian Dobbis

    Insights on estates as beneficiaries, how RMDs are calculated after annuitization, and minimum Roth 401(k) distributions

    THE ROAD TO RETIREMENT with BRIAN DOBBIS

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    The more I meet with financial advisors, the more I’m asked about required minimum distributions (RMDs) from IRAs. As I’ve explained in prior blogs, RMDs are a highly specialized area of retirement planning, and due care should be taken to familiarize oneself with the maze of rules that apply. The consequences for missing an RMD are severe: a 50% penalty surtax assessed on the amount of the RMD that should have been taken. So with that penalty in mind, here are some recurring questions and answers you might want to file for future reference.

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    Recurring IRA Questions from the Road

    March 2, 2017 2:52 PM by Brian Dobbis

    What happens if you made an excess Roth IRA contribution? Or if you have a hefty RMD and don’t need the money? Here are some answers. 

    THE ROAD TO RETIREMENT with BRIAN DOBBIS 

    Many advisors contact me directly with retirement questions. While some of those inquiries pertain to client-specific situations, a number of others are more general in nature. Sorting through that mix, I thought I would share two pertinent exchanges with the readers of this column.

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    The Maze of Inheriting Multiple Retirement Accounts

    October 14, 2016 9:15 AM by Brian Dobbis

    Managing all the retirement plans accumulated during a career can be complicated, especially if they’re inherited from the same person.  

    THE ROAD TO RETIREMENT with BRIAN DOBBIS 

    According to the Bureau of Labor Statistics, the average American worker holds 10 different jobs before age 40, and the number is projected to grow. Keeping track of all the retirement accounts (e.g., 401(k), 403(b), 457, etc.) accumulated through one’s career can be quite a challenge.

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    How to Hedge against RMDs

    June 2, 2016 3:30 PM by Brian Dobbis

    Worried about outliving your IRA savings? Some retirees are purchasing qualified longevity annuity contracts (QLACs) within their IRAs to defer a portion of their RMDs up to age 85.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS

    According to the Stanford Center on Longevity, three out of four Americans indicate that they want to live to 100 if they can do so in good health. Whether they will have enough money to support themselves in retirement, however, is another matter. Some studies suggest that many will struggle, given insufficient savings, pensions, and Social Security. Further complicating matters, IRA owners, once they turn 70½, generally have to take required minimum distributions (RMDs), which are taxable.

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    IRA Alert: Remember Those RMD Rules

    April 28, 2016 1:41 PM by Brian Dobbis

    With so much confusion about required minimum distributions from IRAs, here are some key points on how and when people age 70 1/2 and older must begin their withdrawal.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS 

    "Spend it—or else." That essentially is Uncle Sam’s warning—and the rules are clear: Investors must take required minimum distributions (RMD) from all their IRAs, including SEP and SIMPLE, but not Roth, after reaching age 70½.

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    RMD Alert: Know Your Rules on IRAs and 401(k)s

    December 23, 2015 12:20 PM by Brian Dobbis

    Different rules apply to IRAs and 401(k) plans when it comes to taking required minimum distributions. Be sure you follow the right ones. 

    THE ROAD TO RETIREMENT with BRIAN DOBBIS

    (Third in a three-part series)

    Becoming a septuagenarian may be a jolt, but Uncle Sam wants you to tap some of your nest egg, whether you want to or not.  

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    RMD Alert: How to Avoid Minimum Distribution Mistakes on IRAs

    December 17, 2015 2:40 PM by Brian Dobbis

    Failure to comply with minimum distribution requirements can cost your client a bundle. Such mistakes are happening more frequently as investors stay in the workforce longer.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS

    (Second in a three-part series)

    As much as senior citizens want their nest eggs to last a long time, they generally have to start taking required minimum distributions (RMDs) from their individual retirement accounts the year they turn 70½. 

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    RMD Alert: Deadline for Minimum IRA Distributions Approaches

    December 10, 2015 2:30 PM by Brian Dobbis

    Investors who are required to take required minimum distributions from their IRAs generally must do so by December 31. Here are some things they should know.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS

    (First in a three-part series)

    In all the presentations I’ve given to financial advisors this year, one of the most consistent topics of discussion focused on required minimum distributions (RMDs) from IRAs.

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    Remedies for RMDs

    August 13, 2015 2:27 PM by Brian Dobbis

    Prescriptions for avoiding the pain of taking the wrong minimum distributions at the wrong time

    THE ROAD TO RETIREMENT with BRIAN DOBBIS 

    It’s true in life and it’s true for required minimum distributions (RMDs): Timing is everything. The matter of when individuals withdraw their retirement savings can be delicate. Too early and they may deplete their funds too quickly and miss investment opportunities in the process. Too late and they may run afoul of the tax man.

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    Know Your RMD Rules

    April 30, 2015 1:55 PM by Brian Dobbis

    Different rules apply to IRAs and 401(k) plans when it comes to taking required minimum distributions. Investors and their advisors should know the difference.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS 

    The federal government requires that, upon turning 70½ years old, individuals who own IRAs must commence taking minimum distributions, regardless of whether or not they are still working. Roth IRAs are the lone exception, because they have no minimum distribution requirements. 

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