Tag Archives: Required Minimum Distribution

November 2017 Podcast Video, Financial Planning and Capital Market Update- By John Kvale

Here is our November 2017 Monthly review. If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast format.

Enjoy!

November 2017 Video

 Thank You Holiday Party Goers!

arboretum-after-hours-800x800

Financial Planning Tip(s)-

RMD – Required Minimum Distribution Reminder

In our post here this month, we reminded all of those with birthdays between 7-1-46 and 6-30-47 that have the unique option of deferring their first mandatory RMD taxable distribution to next year, but if you do that will mean you need to take two distributions in the same year.

Considerations:

  • Higher/Lower Income
  • Bigger/Smaller Expenses
  • More/Less Donations

The first year is the only time we get this option, all the future years are mandatory with not option.

Capital Market Comments

A lot of positive indicators – Markets taking notice

It appears the US and Global Economies are finally making a synched recovery. Capital Markets are taking notice.

As we mentioned here, Unemployment rate hit a very low 4.1%

11-1-17 Unemployment rate 10 year trailing

This time, International Markets have wind in their sails as well….

MSCI Global Index

11-30-17 EFA Global

See you on the other side of a New Year !

Happy Fall Season!

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

Is Your Birthday between 7-1-46 and 6-30-47? If so you have an important decision! RMD – Required Minimum Distribution – Delay or Not?

According to current law, the IRS mandates RMD’s (Required Minimum Distributions) from your qualified account by April 1 of the year following age 70.5.

RMD Delay First YearUncle Sam

Given the above IRS requirement, it is possible to delay your first RMD until April 1 of the following year, once you reach the 70.5 threshold.

If your Birthday as of the year 2017 is between 7-1-46 and 6-30-47 YOU CAN delay your initial mandated RMD, however by doing this, you will have two RMD’s in 2018 tax year.

  • Higher/Lower Income
  • Bigger/Smaller Expenses
  • More/Less Donations

These are a few items to consider when delaying or taking that initial RMD.

Feel free to reach out to us if you have any questions!

After this decision … the IRS makes it easy, each year take your RMD and pay the taxes, only on the first RMD, is the delay allowed!

Have a great “Smart Tax Delay” Day!

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

RMD ALERT : If your DOB is 1-1-45 through 6-30-45 … THIS IS FOR YOU!

Required Minimum Distributions (RMD’s) can be deferred for the FIRST year after you turn 70 and 1/2 years young.  Sounds neat huh…. CAUTION !

Deferring Your First Year RMD Causes a Double Dip

Double DipIf you choose to defer your first year RMD, be aware you will HAVE to “Double Dip” and take two distributions the following year. This may cause adverse tax consequences!

Once you pass, you have no other choice,  and not making a decision IS making a decision.

Confused ?? Not to worry, you still have time this year … Well, until 12-31-15 …..  Just give us a call !

Have a Great Day!

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225

RMD ALERT : If your DOB is 1-1-44 through 6-30-44 … THIS IS FOR YOU!

Required Minimum Distributions (RMD’s) can be deferred for the FIRST year after you turn 70 and 1/2 years young.  Sounds neat huh…. CAUTION !

Deferring Your First Year RMD Causes a Double Dip

Double DipIf you choose to defer your first year RMD, be aware you will HAVE to “Double Dip” and take two distributions the following year. This may cause adverse tax consequences!

Once you pass, you have no other choice,  and not making a decision IS making a decision.

Confused ?? Not to worry, you still have time this year … Well, until 12-31-14 …..  Just give us a call !

Have a Great Day!

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225

Realized Gains and Loss Tax Report …. RMD Letters … Travel Reminder

Since we have had so many posts this week I will keep this one short and sweet for your reading pleasure !

Realized Gains and Loss Report Complete

All Realized Gains and Loss Reports have either been posted to your Personal Vault or are on their way to your mailbox. Reports were completed and mailed yesterday !Gains and Losses

Required Minimum Distribution (RMD) Notification

Per US Federal Tax rules, investment firms holding Qualified (IRA, SEP, 401k etc) funds at year end December 31 are forced to let you know what your RMD is for the current/following year by January 31 .

As such you will receive notification from ALL firms holding ALL accounts (no matter how many you have) noting your total mandated RMD for that specific account. This is the total RMD mandated for the current year and needs to be withdrawn by the end of the current year.

Whew…sorry that got wordy, my point was to let you know most likely you are receiving automated notices that you have 11 months to complete….. much better.

Travels and Office Schedule

One of my favorite Willie Nelson songs is “On the Road Again” …. and I am …just to let you know.

Also, Monday is Presidents day, with Capital Markets, Banks and Government entities closed, our office will be as well. We are never far from technology … yaya Nerds…

Have a good day!

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225

Required Minimum Distribution (RMD) Part Three (Final): Two Most Important Items of Any RMD, Advanced Techniques

In our final of a three-part series of RMD, these are the most complicated techniques and very specific in nature.  Every situation is different, please check with us or your tax professional prior to implementing any of these, as these are not recommendations, only possibilities. These techniques can be very helpful “if the shoe fits!”

Before we begin, one last reminder.

Two Most Important Items for any RMD

  1. Do not forget to take it.
  2. Keep good records.

Stretch IRA/RMD

Rather than distributing all funds immediately or over a mandated five-year period of time, giving heirs the opportunity to S*T*R*E*T*C*H (my attempt at grammatical humor) their IRA and other qualified benefits can be very tax friendly. Having a trust as beneficiary or keeping your old company 401k plans disqualify you from this in most cases, another reason why we rarely find it a better option to keep an old 401k at a company plan.RMD

RMD Deferral

If you are still working, you may be able to defer your RMD for the company plan you are a participant. VERY IMPORTANT … the other qualified IRA plans will most likely still require summing the total and distributing a required RMD.  This option is very specific in nature, check with us, your tax professional, or your HR representative for exact details, and keep good records of your discussions.

RMD Off-set

In and out” of certain qualified plans I.e. SEP or others may be a possibility. If you are mandated to take and RMD, but still working, you may be able to make/receive an offsetting contribution. Be sure to check your plan specifics on this technique.

RMD Distribution Techniques

Eventually, no matter what you will need to take an RMD, so here are the popular options for where the rubber meets the road.

  1. Switch the distribution to your taxable account and withhold taxes (far and away our most popular technique.)
  2. Fund a Roth with the RMD funds.
  3.  Spend it.
  4. Donate to charity.

In closing, we hope you have enjoyed our three-part series. Here is the link to the First Part “What and Why?” and Here is the Link to Part Two “Should You Take it Early?”.

Have a Great Day!

John Kvale CFA, CFP

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225 

Required Minimum Distribution (RMD) Part Two: Techniques … Should You Take Your First RMD Early ? … Maybe

In our continuing three part series on RMD (Required Minimum Distributions) started last week here, this week we discuss a few more complicated techniques and items.

RMD Distribution Technique

While the IRS mandates our RMD amount each year (click here for RMD Calculator) they do allow us the option of  lumping our various accounts together and only taking a distribution from one account if desired. RMD

Withdraw from your most liquid and keep your best earning IRA while avoiding any withdrawal penalties may be a possibility by directing your TOTAL distribution from just one IRA. Do not forget to add them all together as that number is what the IRS wants to see us take our distributions based upon.

Keep Up With After Tax Contributions

If you have any after tax contributions in any of your qualified/IRA/RMD accounts be sure to keep up with the basis. Withdrawals from a taxable RMD account are taxed pro-rata and will not be taxed on your after tax basis. Check with your tax professional, but this basis should also be showing up on form 8606 EVERY YEAR in your tax return.

Taking Your Frist RMD Early

Uncle Sam gives us first time RMD ‘ers a break and allows that you take your first RMD as late as April of the following year.  Ahhh ….. but there is a catch, if you wait/defer your first RMD, you will be faced with TWO RMD’s in this tax year. Every situation is different, so choose carefully, but be aware if you delay the max you will double up!

These are not recommendations as there are many moving parts when it comes to RMD’s. No matter what, do not forget your obligation to take your RMD and know there are multiple items you may want to consider when taking.

Have a Great Day!

John Kvale CFA, CFP

http://www.street-cents.com
www.jkfinancialinc.com
8222 Douglas Ave # 590
Dallas, TX 75225