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You have a few days left to dodge this 50 percent tax bill
MSN ^ | 12/28/16 | Kelli B. Grant

Posted on 12/28/2016 3:01:42 PM PST by Libloather

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If you do forget, the IRS may not hit you with that 50 percent penalty.

MSN/CNBC combo. Could be fake news. We may never know.

1 posted on 12/28/2016 3:01:42 PM PST by Libloather
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To: Libloather

I cannot address the tax penalty; however, my mother’s Edward Jones agent contacts me each year for approval to transfer investment funds to Mother’s checking/savings account. There is an acronym/name she uses, but I do not know what it is without looking it up.


2 posted on 12/28/2016 3:08:45 PM PST by lyby ("Mathematics is the language with which God has written the universe." ~ Galileo Galilei)
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To: Libloather

BTDR


3 posted on 12/28/2016 3:10:47 PM PST by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: Libloather

No, it’s not ‘fake news’. You will be hit with a fifty percent penalty if you do not take RMD as required by law.


4 posted on 12/28/2016 3:13:44 PM PST by DugwayDuke ("A man hears what he wants to hear and disregards the rest")
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To: Libloather

,


5 posted on 12/28/2016 3:17:50 PM PST by BunnySlippers (I Love Bull Markets!!!)
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To: DugwayDuke
You will be hit with a fifty percent penalty if you do not take RMD as required by law.

50% of what, exactly?

6 posted on 12/28/2016 3:21:31 PM PST by fwdude (Democrats have not been this angry since Republicans freed the slaves.)
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To: Libloather

Normally, your brokerage house should be screaming at you if you don’t take it. They know how old you are, and how much is in your IRA, so they will unleash a stream of warnings.

You also have to take a RMD from non-sposal inherited IRAs, both regular and Roth, regardless of your age. If you inherit an IRA, you should study the rules carefully. You can make them work to your advantage to maximize the income you receive.


7 posted on 12/28/2016 3:22:47 PM PST by proxy_user
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To: lyby

That’s exactly right, any brokerage will do the same, amking the calculation, and you just do what they say.

Either sell shares if there is not enough cash in the account; or, write a check to yourself, or, if you have a street account at the same brokerage, you can transfer shares from your IRA to your street account without actually selling anything.


8 posted on 12/28/2016 3:23:32 PM PST by Attention Surplus Disorder (Apoplectic is where we want them!)
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To: DugwayDuke

This is under IRS Publication 590 or “Rule 590.”

I wrote to our new president about this issue.

Hope he can do something about it because it is a tax on already taxed savings.
A tax on a tax.


9 posted on 12/28/2016 3:23:41 PM PST by Eric in the Ozarks (Baseball players, gangsters and musicians are remembered. But journalists are forgotten.)
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To: Libloather

Yet another fine reason to abolish the IRS.


10 posted on 12/28/2016 3:24:24 PM PST by boknows
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To: Libloather

Bttt.

5.56mm


11 posted on 12/28/2016 3:28:18 PM PST by M Kehoe
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To: sauropod

Study


12 posted on 12/28/2016 3:43:03 PM PST by sauropod (Beware the fury of a patient man. I've lost my patience!)
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To: lyby

RMD.


13 posted on 12/28/2016 3:43:13 PM PST by riverdawg
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To: Eric in the Ozarks

The whole idea of an IRA is that both the principal originally deposited, and the resulting profits, were never taxed. That’s why you’re taxed when you take out the money.


14 posted on 12/28/2016 3:45:24 PM PST by proxy_user
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To: lyby

how about ira tax sale 15% all tax proceeds to debt reduction.
would be excellent economic boost.


15 posted on 12/28/2016 3:48:41 PM PST by jonose
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To: fwdude

50% of the required minimum distribution. For example, if you are required to withdraw $4000 per month from your retirement plan accumulation, the penalty is $2000 per month until,you comply.


16 posted on 12/28/2016 3:49:31 PM PST by riverdawg
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To: Libloather

IRAs are a bad deal in so many ways...


17 posted on 12/28/2016 3:50:06 PM PST by aMorePerfectUnion
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To: fwdude

50% of the RMD the taxpayer was required to take in that tax year.


18 posted on 12/28/2016 3:52:52 PM PST by DFG
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To: Libloather

This article raises a question. It says you don’t have to take a distribution even after the age of 70.5 if you aren’t “retired”.

I collect Social Security, but also have Schedule C income from actively managed rental real estate and playing music.

So, it sounds to me like I’m not retired and don’t have to take a RMD at age 70.5.

Another question for my accountant.


19 posted on 12/28/2016 3:55:26 PM PST by SaxxonWoods (Ride To The Sound Of The Guns)
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To: aMorePerfectUnion

Maybe, maybe not. You got to defer taxes for all those years you contributed and until you retire. Usually you are in a lower tax bracket after retirement when you start paying taxes on your withdrawals.

I’m going to look into this business about not having to take a distribution if I haven’t retired as I mention in an above comment.

You can pass retirement account to heirs upon your death tax free. I’d like to do that if possible.


20 posted on 12/28/2016 3:58:30 PM PST by SaxxonWoods (Ride To The Sound Of The Guns)
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