Q3 2017 Reminders

  • The IRS requires that folks over 70.5 take required minimum distributions (RMD) from traditional IRAs.  The penalty for missing an RMD if 50% of the distribution, so don’t miss an RMD. Also, if your 70th birthday falls between July 1 and December 31, 2017, you might be tempted to postpone your first distribution until the year in which you turn 70.5; i.e. 2018.  If you do, however, you will be required to also take a distribution when you turn 71, meaning you’ll have to take two distributions in one year, which may make for an unpleasant tax bill.  Consult your tax professional for planning assistance.
  • If you have philanthropic or charitable aims, consider setting up a Donor Advised Fund (DAF).  It may be a cost-effective way for you to retain control of where donations go.  We can provide you with more information.
  • As the year begins to run downhill, don’t miss out on opportunities to max out your retirement plan contributions.