Important Deadline Regarding RMDs

Remember when you used to give your age using fractions? “I’m three and three quarters!” you would proudly declare. The time has come again to proclaim your age with a fraction, especially if you’re seventy and a half – this message is for you:

  • RMDs must typically be taken by December 31 each year; except for the year in which you turn 70 and a half.
  • When you turn 70 and a half, you have until April 1 of the next year.
  • The effective deadline for 2014 RMD first-timers is coming up fast. Tuesday, March 31 is the deadline.

To clarify: if you turned 70 and half in 2014, you must take your Required Minimum Distribution (RMD) by March 31st, 2015

If your financial advisor has not contacted you via email or regular mail, we recommend you reach out to him/her to ensure your proper RMD has been calculated.

Did you receive a form 5498? Look at Box 11 to see if an RMD is due.

For more information or for RMD calculators, click here.

Fun Facts:

  • The RMD rules apply to traditional IRAs, most 401(k)s and other qualified retirement plans. The rules don’t apply to Roths.
  • RMD amounts are based on an IRS formula driven by the account owner’s life expectancy; the RMD is calculated by dividing the year-end account total by the number of years you’re expected to live.
  • If you have multiple accounts, you need to calculate the RMD for each IRA separately. But you can aggregate the amounts owed and make the withdrawals from whatever accounts you like.
  • If you have other qualified plans (such as 401(k)s) those must be calculated and paid out separately from those accounts.
  • If you have an inherited (or beneficiary) account, that RMD must be satisfied separately, too.
  • Although most investors take the smallest RMD possible, there’s no limit on how much you can withdraw without penalty after you reach age 59-1/2.
  • RMDs can be taken in a single lump sum, or through a series of timed distributions throughout the year.

Be sure to check out our Social Security and Retirement Planning page on our website for more information on RMDs, Roths and general information on the subject. We are happy to help with any planning or questions you may have.



April 15 Will Be Here Before You Know It! Here’s What You Need to Know

Many of you have already filed your 2014 Income Tax returns. Your job is done!

Many of you are in the process of having your returns prepared.

For those of you who have yet to begin the process, here is some important information:

  • If your complete tax information is to us by the 1st of April, we can guarantee the return will be done prior to the April 15thfiling deadline.  If you are unable to get your complete tax information to us, we will happily do an extension  please email or call to discuss the next steps.

To all who are required to pay Quarterly Estimated Taxes: The first installment of your estimated tax payments is due on or before April 15th.

Please note: If you will be filing for an extension and are required to make estimated tax payments, contact us so we can calculate your 1st Quarter estimate for 2015 and provide you with a payment voucher.

Form 1095 – UPDATE

The government has informed us that ONLY people who purchased health insurance through the AccessHealthCT marketplace (and therefore would have been a part of the tax subsidy program) will be receiving Form 1095A.

If you have been waiting for Form 1095 from your health insurance provider, they are not required to send one this year, but will be required to do so in 2016 for 2015.

We know new tax requirements can be confusing and we apologize for any confusion this may have caused.

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