You may know that if you are a first time homebuyer, you can get an exclusion from early withdrawal penalties up to $10000 if you withdraw the money from an IRA. However this doesn’t work with a 401K or any other qualified retirement plan. If you can roll the qualified plan money into an IRA, then take the money for the house down payment, that would work.Any questions? Call me at 818-317-6035 or email me at bstonercpa@sncglobal.net You can count on us to count for you!
Brian’s Tax Musings – Penalty for not taking RMD
You have been taking the Required Minimum Distribution for a while, then your bank forgets (or you forget) to the the RMD in a year. The IRS will penalize you 50% of the RMD unless you do the following:Take the RMD the following year (There will be two RMDs that year) andRequest a waiver of the RMD penalty with your tax return,See the IRS website for more info:http://www.irs.gov/retirement/article/0,,id=96989,00.html#9I can help with this – call me at 818-317-6035 or email me at bstonercpa@sbcglobal.net with questions.You can count on us to count for you!
Brian’s Tax Musings – Required Minimum Distributions
If you have an IRA or a qualified retirement plan (401K, 403B. etc) and you are 70 1/2 this year, you are required to start taking the Required Minimum Distribution from your account. You actually have until April 1 the following year to take the first RMD payment (meaning you will have two payments that year.)Here is what the IRS says about RMDs:http://www.irs.gov/retirement/article/0,,id=96989,00.html#1If you have questions about how to calculate the RMD or about the RMD requirements, call me at 818-317-6035 or email me at bstonercpa@sbcglobal.net and we can discuss them.You can count on us to count for you!