Not meeting this deadline could cost you a bundle

Are you required to take distributions from your IRA? If so, you better get a move on it, because the deadline is December 31 … just a few weeks away.  And the penalty for not meeting the requirement by then is a staggering 50% on the amount not withdrawn.

There is, however, an exception …

If you turned 70½ this year, you’ll have until April 1, 2012, to take your first distribution. But the second distribution will have to come out by December 31, 2012. That means you’ll have to include both distributions as income on your 2012 tax return.

You can find more information on IRA distributions in IRS Publication 590.

Best wishes,

George

P.S. There was no way Obama’s long-term care plan was going to work. Now it’s official: The CLASS Act is dead. And that means the responsibility to take care of yourself if your health changes rests on your shoulders. Get the facts and learn your options in my just-updated book: A Boomer’s Guide to Long-term Care.