“If I’m not mistaken, doesn’t the penalty go up to 20% come January 1, 2013?”
Since my trophy bride and I are in our 70’s, I haven’t paid attention to the penalty aspects.
We have the opposite problem. In October, I receive a letter from Fido re our IRAS, informing us that we needed to increase our withdrawals even though we used their formula in January for monthly withdrawals.
So the good news, this year, we made money on our IRAs and our balances were/are ahead of last year inspite of fairly heavy monthly withdrawals to reach our minimum yearly withdrawals.
The bad news is, we need to withdraw more to avoid a penalty for not meeting the minimum yearly withdrawal which kicks in during your 70th year.
Of course every withdrawal is subject to federal and Californicator income taxes.
I may be wrong about it. I did a google search and couldn't find anything about the penalty increasing to 20%, but both my husband and I could have sworn we read that in relation to Obamacare. Maybe it was just a proposal. I don't know. Don't want to put false info out there.
Of course every withdrawal is subject to federal and Californicator income taxes.
Oh boy, they get you coming or going, don't they? Sometimes both!