Tag Archives: RMD

Time for another question!

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Q: I will be turning 70.5 in November. When do I have to take the mandatory withdrawal, and how much do I have to take?

A: You have to take your first Required Minimum Distribution no later than April 1st of 2014. Your first withdrawal will have to be 3.65% of the 12/31/12 balance of all of your Qualified Accounts. If you wait until April 1st of 2014, you will have to make two withdrawals that year. Two withdrawals in one year could increase your tax burden tremendously. You may want to take part or all of your first RMD this year to ease that potentially large tax in 2014.

 

Disclosures:http://www.hechteffect.net/?page_id=31

I turned 70 1/2 last year and I have to take my first RMD by April 1st. How do I calculate what I need to withdraw?

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April 1 is the date of your first withdrawal the year after you turn 70 1/2. After the first year, your annual RMD must be withdrawn by 12/31. If you are still working and contributing to a 401k, you do not need to take withdrawals from the 401k until you do retire.

If you go to www.irs.gov and look for publication 590 you will find the withdrawal tables to be used.

Your taxing questions

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Q: I take enough required minimum distribution from my IRA to cover all of the RMD. Do I need to take a seperate RMD from my 401k?

A: As long as you withdrawl the required amount, no you do not.

Q: Can I still deduct sales tax in 2011?

A: If you itemize, the deduction for sales tax still applies for 2011.