RMD – AKA Required Minimum Distributions – the Governments’ mandate of distribution from our IRA (Pre-Tax) funds in order to finally occur taxes is upon us…..
RMD Season 
In the coming weeks we will begin transferring mandated funds from our IRA/Qualified/Pre-Tax accounts to their directed destinations….
As a reminder this is so the US Government gets to take the taxes due …
IMPORTANT (Neat) Facts –
- RMD $$ mandated amounts are determined by the value of applicable accounts on the last day of the prior year
- Current year age is a necessary factor included in calculating the RMD – see below next, first time exception – each year of seasoning (getting older) we are forced to take more out of the applicable accounts – hey the IRS has never taxed us on these in many cases – it’s their time!
- After tax contributions to a qualified account MUST be accounted for in order to avoid taxes – here are greater details and our taxpayer obligations on this – don’t overpay – the IRS is not tracking this and will not come to the rescue and lower your taxes
- All of an individual’s accounts must be included/totaled/value (certain exceptions are made to those continuing to work) to ascertain the needed distribution
- Any one account can be used to satisfy the needed distribution (you do not have to take a little from each account, making it easier from an organization standpoint) BUT you must take at least the minimum distribution
- Failure to take the mandated distribution amount COULD result in a 100% tax – Break in – our experience has been the IRS is nice about this, but let’s not test them
Here is a neat three part series from a while back that is worth a review!
70.5 is the key starting age
The mandatory commencement date of RMD’s is the year AFTER you turn 70.5 years young, under current tax law…
If you accept this first year deferral, you will incur two RMD’s in the year you commence your first RMD…
Depending on the situation, it may be advisable to distribute your first year RMD a year early so as not to clump your taxable distribution….
Is your DOB between 7-1-47 to 6-30-48?
Then you turn 70.5 in 2018 and you CAN defer your RMD until 2019, however you will have two RMD’s next year — be careful, large distributions could toss you into an extra tax bracket.
Reach out if you have ANY questions, we have plenty of time, BUT the clock is ticking…
Have a great ‘RMD Efficient Distribution” Day!
John A. Kvale CFA, CFP
Q 3 2018 Newsletter Video Audio Podcast Review By John Kvale
Welcome to our Video and Audio Podcast Review of our Q 3 2018 Newsletter. For those on the road or just unable to grab the time to read, our podcast type review gives you the behind the scenes insight to our thoughts, observations and deep views of the entire Newsletter.
Click here for direct link to an electronic version (an early peek-good ole fashion paper versions are on their way to you shortly) and here for our Newsletter page
Let’s get going!
Q 3 2018 Newsletter
And here is your review!
Inverted Yield Curve
In this hugely in depth article was originally ran in abbreviated form, here, here, here, here and here on street-cents.com-
Here is the key graph-
The inverted yield curve has been a good predictor of recessions.
Three Key Tax Items
In our detailed article in the Newsletter, we address the three key tax change items-
Where have all the Stocks Gone?
In this Article we discuss the absence of stocks over the past several decades, leading to possible higher valuations.
Enjoy your summer-
See Ya next Quarter!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com
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Posted in Audio, Investing/Financial Planning, Market Comments, Newsletters, Tax Related, Video
Tagged Found Money, Inverted Yield Curve, Rates, Tax Rates, Tax Savings, Tripit