Even rock stars get older. Although it may seem hard to believe, both Steven Tyler of Aerosmith fame and rock legend and reality tv star Ozzy Osborne celebrate their 70th birthdays in 2018. Steven Tyler turned 70 on March 26, 2018 and Ozzy will reach that milestone on December 3, 2018.
Both my husband and I turn 70 this year but only one of us has a required minimum distribution (RMD) from our retirement accounts. Here is why.
RMDs begin in the year you turn 70 ½, not 70. He turned 70 in January, so he turned 70 ½ in July. That means that he has an RMD for this year from his retirement accounts.
As you accumulate money in an employer retirement plan, somewhere along the line you are going to be faced with one question: should I leave it in the plan or roll it out? For many, that question doesn’t arise until they separate from service or reach age 59 ½. Employees that participate in plans with in-service distributions before age 59 ½ will ask that question much sooner.
Retirement savers have also seen the purchasing power of their savings reduced by inflation
IRA distributions and Roth IRA conversions can affect the size the Medicare premiums you pay. Here's how, and what to do about it.
Do you have after-tax dollars in your IRA? This could be from making nondeductible contributions to your IRA or rolling over after-tax funds from your company plan to your IRA. If so, you will want to know about the pro-rata rule.
Question:
My wife and I could not open Roth IRA accounts in the past because our combined household earned income was always above the allowable exclusion limits. I recently retired in June of 2017 at the age of 63 and my wife being 10 years younger will continue to work presumably for the next 10 years.
There’s an old saying that being close only counts in horseshoes and hand grenades. Such is the case with the U.S. Tax Code. In this arena, deadlines and timing really matter. Trying to do a 60-day rollover 61 days after the actual receipt of withdrawn funds doesn’t work.
Not all contributions to IRAs belong there. When a contribution is not permitted in an IRA it is an excess contribution and needs to be fixed.
Hi,
I have a friend, 45 years old, who has both an individual Roth IRA and an individual rollover IRA. The Roth is over 5 years old. He would like to know if he can use either to pay off a debt he incurred several years ago.
