did you know
Baby Boomers
Turn 70 .
Top hoto by rudyanderson, money photo by NikolayF via pixabay.com
the IRS
Smiles
by Lisa LaMarche CFP®, CPA
Baby Boomers, 70 ½ is a key
date in our aging journey, and
it just so happens that the
first Boomer turned 70 ½ on
7/1/2016! The IRS has been
waiting for a long time for this
date. Why? Simply because
Boomers must begin taking their
required minimum distributions
(RMD’s) from their retirement
accounts. In turn, the IRS will
begin collecting taxes on the
accumulation of wealth that has A. START DATE
been deferred and amassed in The first distribution must be taken by April
1st of the year following the calendar year in
their retirement accounts. The which you reach age 70 ½. After the first year,
reason this is so important is that the distribution must be taken in that calenthe IRS assesses a penalty dar year. These first two years can be a little
tricky because you might end up with two
of 50% of the distribution years of distribution in the same
you were supposed to take year. Example: You turn 70 ½ on
(according to their Uniform July 15, 2016. You must take
your first RMD, for 2016
Lifetime Tables) if you fail by April 1, 2017. You must
to take your RMD on time. take your second RMD,
Seriously, 50%! That said, let for 2017, by December
31, 2017 and your third
me break it down for you so you RMD by December 31,
understand the basics. 2018. Note: if you are
still working at 70 ½, you
may be able to delay the
distribution. Also, defined
contribution plans (think
401’s) have unique rules.
Lisa is a Partner and Certified Financial Planner™ of
Milestone Wealth Advisors. Milestone Wealth Advisors is
a comprehensive wealth management firm that provides
honest, independent advice that always serves the best
interest of each client. Lisa’s goal is to ensure that clients
feel in control of their finances and can confidently make
decisions regarding their retirement, investments, ri