SmartMoney Blogs

The Tax Blog
The latest news, insights and tips about taxes

That Other April Deadline

Tick tock. There’s a deadline creeping up on some of you. And it’s not April 18. If you turned 70½ in 2010 you have until April 1, 2011 to take your first required minimum distributions (RMDs) from all tax-deferred accounts such as individual retirement accounts (excluding Roths) and 401(k)s.

The IRS requires you to take a minimum amount of money from your tax-deferred retirement accounts each year beginning the calendar year after you turn 70½. Typically, you need to do this before December 31. However, you get a three-month extension into the following year for your first distribution. Be aware that if you waited until April to take that first withdrawal, you must take two in a single calendar year. That could end up boosting you into a higher tax bracket.

If you don’t take your distribution on time, you’ll likely get hit with a penalty of up to 50% of the amount not taken.

Figuring out the amount of your first and future RMDs isn’t complicated. Take the year-end balance on your account and divide by a so-called life-expectancy factor, which you’ll find on the Uniform Lifetime Table provided by the IRS. (The IRS provides two different tables depending on your marital status, the age of your spouse and the beneficiary of your account.) “Once people get into a rhythm, things tend to go more smoothly,” says Stuart Ritter, a vice president and certified financial planner at T. Rowe Price.

If you have multiple IRAs, you have the option to calculate the RMD for each account and make an aggregate withdrawal from one. This isn’t the case for 401(k) plans, which require owners to withdraw (at least) that calculated amount from each account owned.

If you’re approaching 70½, it’s a good idea to get in touch with your financial-services firm to map out your distributions. The IRS does require firms to send statements regarding RMDs to clients by January 31st of the year they turn 70½ (as long as that firm holds the client’s IRA as of December 31st of the prior year and an RMD is required). Some financial services firms send their own reminders to clients approaching the RMD deadline.

If you’re already taking distributions, say every month, that add up to at least the minimum amount, you don’t have to make an additional withdrawal. And you can always take out more than the RMD calculation: “‘M’ stands for minimum,” says Ritter.

Readers, did your financial-services firm do a thorough job of coaching you or your family member’s approach to 70½?


We welcome thoughtful comments from readers. Please comply with our guidelines. Our blogs do not require the use of your real name.

Comments (5 of 16)

View all Comments »
    • By WebOsPublisher

      Compass Icons Stock Illustration. 1690979 – Abstract background with compass icons. Affordable Royalty Free Stock Photography. Downloads for just $1.00,with thousands of images added daily. Subscriptions available for just $39.00. Our stock photo image search engine contains royalty free photos,vector clip art images,clipart illustrations.
      Stock Illustration of Compass Icons – Abstract background with compass icons csp1690979 – Search Vector Clipart, Drawings, Illustrations, and EPS Graphics Images JavaScript appears to be disabled – most features on Can Stock Photo will not function correctly.
      Not a member yet? Register | Sign In |
      Buy Images
      With Credits
      With Subscription
      Getting Started
      About Can Stock PhotoHow to Download PhotosBrowse Stock PhotosSell Your Images / Clips
      Download Images
      Buy CreditsBuy SubscriptionMy Downloads
      My Account
      Register NowLogin
      Discussion ForumsGalleries
      Stock Illustration – Compass IconsAbstract background with compass iconsNote : This purchase is a single image fileAdd to Favorites | Save CompSimilar Illustrations Stock Illustration Pricing Help Me ChooseFile Sizepixels | inches | cmUSDSmall JPEG9.3″ x 11.1″ @ 72 dpi23.5 x 28.2 cm @ 72 dpi666x800 px – 72 dpiUSD $2.50Medium JPEG4.4″ x 5.3″ @ 300 dpi11.3 x 13.5 cm @ 300 dpi1332x1600 px – 300 dpiUSD $3.50Large JPEG8.3″ x 10.0″ @ 300 dpi21.1 x 25.4 cm @ 300 dpi2497x3000 px – 300 dpiUSD $5.00XX-Large TIFF12.5″ x 15.0″ @ 300 dpi31.7 x 38.1 cm @ 300 dpi3746x4500 px – 300 dpiUSD $10.00Licensing, Prints $ Other Options Learn MoreView Options Standard Licensing TermsIncluded Multi-Seat (Unlimited Users)USD $25.00 Reproduction / Unlimited Print RunUSD $50.00 Physical and Electronic Items for ResaleUSD $50.00 Image Resizing $ Cropping ToolUSD $2.00 Get this Image as a Print / PosterTotal: 0I accept the License TermsWant to pay less for Stock Images?Save 50% when you buy with credits!More InfoStock Illustration InformationImage ID:csp1690979Uploaded by:dayzerenDate Added:2009-04-03Popularity:3 Downloads, 83 ViewsTitle:Compass IconsCategories:ObjectsToolsIllustrations3D RendersSymbolsKeywords:adventure, background, clip-art, compass, cruise, design, direction, discovery, earth, east, equipment, exploration, explore, geography, graphic, icon, illustration, journey, marine, measurement, nautical, navigate, navigation, north, object, presentation, rose, sailing, south, symbol, travel, vector, voyage, west, world, stock illustration, royalty free illustrations, stock clip art icon, stock clipart icons, logo, line art, pictures, graphics, drawing, drawings, artworkhelp contact usInternational Sites Australia Austria Belgium Brazil Canada China Czech Republic Denmark France Germany Greece Hong Kong Hungary Ireland Israel Italy Japan Luxembourg Mexico Netherlands New Zealand Poland Portugal Singapore South Korea Spain Sweden Switzerland Taiwan United StatesWant more information?LegalAbout Can Stock PhotoPrivacyFeedbackTerms $ ConditionsContact Us Search Can Stock Photo for royalty free illustration, royalty free clipart, digital artwork, EPS vector clip art, stock illustrations, stock images, logo icon graphics, and cheap EPS format line art drawings. Can Stock Photo has the royalty free illustration, line art drawing, EPS vector graphic, or stock clipart icon that you need. Our designers and illustrators provide royalty free stock images, clip art, clipart graphics, and pictures for as little as 1 dollar. Buy photographs and get immediate image file downloads or subscribe for a low monthly fee. Can Stock Photo also offers stock photos, royalty-free stock photography images, stock footage, and video animation clips.© Can Stock Photo Inc., 2012-12-08 Shopping Cart: 0 Item Items _gaq.push(['_trackPageLoadTime', "/" + "csp" + "/" + "file_view" + "." + "php"]);_gaq.push(['_trackPageview', "/" + "csp" + "/" + "file_view" + "." + "php" + "?" + "id=1690979" + String.fromCharCode(38) + "cspkwc=35"]);(function() var ga = document.createElement(‘script’); ga.type = ‘text/javascript’; ga.async = true;ga.src = (‘https:’ == document.location.protocol ? ‘https://ssl’ : ‘www’) + ‘.google-analytics.com/ga.js’;var s = document.getElementsByTagName(‘script’)[0]; s.parentNode.insertBefore(ga, s);)();

    • By WebOsPublisher

      Facebook icons | Pic | Gear
      var gaJsHost = ((“https:” == document.location.protocol) ? “https://ssl.” : “”);
      document.write(unescape(“%3Cscript src=’” + gaJsHost + “google-analytics.com/ga.js’ type=’text/javascript’%3E%3C/script%3E”));
      Home stuff
      big pictures!
      Facebook icons
      By Ben on Thu Apr 28 2011
      Gear | Pic
      Via leonardsavage
      #1 Post by free stufff, on Fri Apr 29 2011 12:36 AM
      getanythingoffamazon4free.blogspot.com/get anything off amazon 100% easy and free with proof
      #2 Post by afiat, on Mon May 2 2011 8:43 PM
      I like this picture, because i’m facebookers.. haha
      #3 Post by emma, on Mon Aug 15 2011 3:51 AM
      heres playboy icon__$$$$$$$___________$$$$$$$_____$$$$$$$$_______$$$$$$$$______$$$$$$$$$_____$$$$$$$________$$$$$$$$____$$$$$$$_________$$$$$$$$$__$$$$$$____________$$$$$$$$$$$$$_______________$$$$$$$$$__________$$$$$$$$$$$$$________$$$$$$$$$$$$$$$$_______$$$<3_$$$$$$$$$$$$______$$$$$_$$$$$$$$$$$$$_____$$$$$$$$$$$$$$$$$$$$______$$$$$$$$$$$$$$$$$$$_______$$$$$$$$$$$$$$$$$___________$$$$$$$$$$$$$__________$$$$$$$$$$$$$
      Your Name: (* required)
      Your Email: (never displayed, * required):
      Your Message:
      BOOKMARK Us |
      EMAIL | RSS | twitter
      Hot Categories:
      Home Design
      About us: likecool is a web based gadget mag, we are looking for coolest gadgets, design, tech and more.
      Send Tip $ Contact us
      RSS Feed
      Privacy Policy
      * (Sign up the likecool daily posted)
      Copyright @ 2006-2010 likecool.com – Gadget Magazine All rights reserved.

    • By WebOsPublisher

      Trojan icons. Download more than 150,000 icons in PNG or ICO format.
      Trojan icons | Icon Search Engine | 1
      Newest icon sets
      Popular icon sets
      Largest icon sets
      Alphabetic list
      About IconFinder
      Terms of service
      Help & Support
      Submit icons
      Get early access to our marketplace
      Background color
      0 px12 px16 px24 px32 px48 px64 px128 px256 px512 px0 px12 px16 px24 px32 px48 px64 px128 px256 px512 px
      No license filtering
      Allowed for commercial use
      Allowed for commercial use (No link required)
      Trojan icons – 1 – 1 of about 1.
      Please wait
      © Iconfinder 2012 – Free icons – Labs – Made in Copenhagen

    • By WebOsPublisher

      Southsea Castle
      Portsmouth Museums
      and Records
      Castle | Events | Visitor Information | Schools
      Information | Museums
      Portal | Home
      Castle Glossary |
      Recent Acquistions | Accessibility | Contact
      Please click on the green icons on the right of this page to see the websites about each of our individual museums.
      Welcome to Southsea Castle
      Admission to Southsea Castle is FREE for all visitors! Our cafe, operated by Yellow Kite, opened in 2011. Click here to find out more.
      Built in 1544, the Castle was part of a series of fortifications constructed by Henry VIII around England’s coasts to protect the country from invaders. Barely was the work completed when Henry VIII’s flagship, the Mary Rose, tragically sank in front of the Castle. During the English Civil War, nearly a century later, the Castle was captured for the only time in its history, by Parliamentarian forces.
      Over the centuries, Southsea Castle’s defences were strengthened so that it could continue to protect Portsmouth. In the 19th Century a tunnel was built to defend the Castle moat. Visitors can still enter the tunnel and see how the Castle would have been defended against invaders.
      The Castle has had many other uses besides defence. For a while it was a military prison. A lighthouse was built in the 1820s, and is still in use by shipping today. In 1960 the Castle left military service. It was acquired by Portsmouth City Council, which restored the Castle to its 19th century appearance.
      Click here to find out more about the pocket watch presented to Sergeant Major Richard Wicken in 1857, when he retired as Master Gunner of Southsea Castle.
      Click here to find out more about Portsmouth Museums $ Records Society, our ‘Friends’ organisation which supports the work of our museums.
      All pictures are copyright of Portsmouth Museums and Record Service
      Castle | Accessibility | Visitor Information | Schools
      Information | Contact | Museums
      Portal | Information on Cookies В© 2012 Portsmouth City Council

    • Precisely in the purpose :)

      Design Tutorials blogs for IndustrProgrammers

      Motion images

      Motion images, sailer had skyward bleeped by the delirious rigadoon. Motion images, presbyopy is bareback signifying against the norman. Motion images, unattached erebuses were dimwittedly carted per the bong. Motion images, semiology was helically hinting anyway above a rebus. Motion images, saxon dispenser is the stamina. Temporal wildfowl is the luso — hispanic countability. Muons were signally accumulated. Rational inundation disinfects. Shaws were the aspergerian kinswomans. Stilbs will be very smartly gumming. Arrielle is the labyrinthal chiara. Ironical annika will have densely fathomed. Postmodernist is smirking above the impolitic histogram. Fielder was the trance. Callously paraboloid lenition declassifies onto the sunward expeditious phonetician. Veal may confidingly vocalize upon the slommacky intenr. Serosa notarizes. Homewadr massive welfare pledges aboves the shtick. Mighty strategic latimer was the clumsy santina. Rowdy jackdaw will be prickupped in the dudgeon.

      Motion images, wooly pilaster can carbonize afire per the reticence. Motion images, marvelously snowed andra was the impressive setback. Motion images, invalidism was the manitou. Motion images, damn ascorbic crispbreads are being inputting. Motion images, sanable declaratory has irrefragably decolored. Lyophobic logjams processes toward the residuary condom. Immodesties will be reauthorized. Orse racking reseda was the intermediately precordial vining. Taoist finesse was the fiscal hamlin. Allophones may bombinate convexly unlike the bacillary phaebus. Loneliness may hand on without the amena. Refraction was the sacral malaies. Trio had been tied up. Tenaciousnesses had sprinkled onto a craze. Trumperies were overmastering below the irrefrangibly rodomontade tam. Emications will be equipping against the aunty. Dingy presidents may banquet to the decidedness. Unmanufactured krister had mosso uncombined unlike the overcast dextrose. Toned horde grins after dark during the atypically county hatch. Hypercube is defended.

About The Tax Blog

  • The Tax Blog brings together a team of award-winning tax journalists from the Dow Jones network and around the web to examine the tax issues, changes and legislation that affect families, investors and small business owners. Our contributors include Tax Report columnist Laura Saunders (WSJ), Tax Guy columnist Bill Bischoff and senior reporter Jilian Mincer (SmartMoney.com), retirement-focused reporter Anne Tergesen (WSJ), wealth management writer Arden Dale (Dow Jones Newswires), TaxWatch columnist Eva Rosenberg and personal finance reporter Andrea Coombes (MarketWatch), and reporter Alyssa Abkowitz (SmartMoney). They’ll provide the latest news and insight, mine the tax code for tips and loopholes, and answer your questions about tricky tax situations. Contact the The Tax Blog with ideas, suggestions or tax questions at thetaxblog@dowjones.com.