Age 70 1/2 Part 2

[Peachie]

I cannot believe S T has the similar question I came here to ask about RMD. My taxpayer turned 70 in September last year. 70 1/2 would have been in March-according to what I read, he should have made a RMD by April 1, or am I reading that incorrectly? Will he be ok if he makes a withdrawal by the end of the year or will the few days make him eligible for a 50% penalty? Please say it's not so.

I am surprised he didn't receive something in the mail from the Trustee of his IRA. I called to inquire about it (he hasn't come in yet to get his taxes done), and he says he has nothing. Can Roland or someone else who has a better grasp of this subject tell me what I need to do to help him? I appreciate the comments.

Peachie

[travis bickle]

recheck your research

your client has to take his rmd by april 1 of the year AFTER he turns 70 1/2.

so, if he turns 70 1/2 this april 1, he has 12 months to take his rmd -- that is probably why his ira trustee has not said anything yet (letter is in the mail).

[fliszt]

I've run into the same

problem. Several clients have their funds at Wachovia Securities. It appears that Wachovia does not send out "reminders" to take the RMD. A couple of my clients almost messed up if it hadn't been for their astuteness. I have taken to putting "notes" in the client folder to remind me to tell them when they are close to 70-1/2. (that is at my age IF I can remember)

[Peachie]

Lots of hugs Travis

your client has to take his rmd by april 1 of the year AFTER he turns 70 1/2. .

That word AFTER is huge. I missed that. Thank you so much. This makes my day.

Peachie

[JG EA]

But I think he'll have to double up in 2009 so if that would hurt tax-wise have him withdraw in 2008.

[Peachie]

I suggested that he

But I think he'll have to double up in 2009 so if that would hurt tax-wise have him withdraw in 2008.

makes his first withdrawal this year JG for the very reason you mentioned. Since he's still employed, it will make a difference.

Thanks.

Peachie

[Chief]

Rmd's

Vanguard also did not take RMD's for several years for one of my clients. I am doing Form 5329 for those years after the 15th of the month. These custodians have to be watched.

[ChEAr$]

The trustee

problem. Several clients have their funds at Wachovia Securities. It appears that Wachovia does not send out "reminders" to take the RMD. A couple of my clients almost messed up if it hadn't been for their astuteness. I have taken to putting "notes" in the client folder to remind me to tell them when they are close to 70-1/2. (that is at my age IF I can remember)

MUST remind them. It's the law.