Once you turn 70½, you must take withdrawals from your retirement plans. The IRS specifies the minimum amount you must take each year. Failure to make minimum withdrawals can result in severe tax penalties. The IRS requires that you take at least the amount equal to thebalance in your retirement account at the end of the prior year divided by the number of years you are expected to live based on actuarial tables approved by the IRS. For example, if you are 72 years old and had $500,000 in your retirement account on December 31 last year, your minimum required distribution this year would be this:Read More
You can take out any amount at any time from your retirement plan without facing an early withdrawal penalty once you have reached age 59½, but you must begin withdrawing minimum annual amounts from your plan once you reach age 70½.
You must begin withdrawing minimum annual amounts from your plan once you reach age 70½.
If you fail to take out the required minimums, you may face a 50 percent excess accumulation tax. TheInternal Revenue Service imposes the tax on any part of the annual minimum distribution that you fail to take.Read More
Retirement fund assets go directly to the benefiiary named on the account. In most cases, the beneficiary should be named individuals, but sometimes a trust or a charity is an appropriate beneficiary. Using the beneficiary option allows the proceeds to bypass probatecourt. The beneficiary, if a married qualified retirement plan participant does not specify otherwise, defaults to the spouse. That is appropriate in many, but not all, family situations. Furthermore, the spouse would have to consent in writing in order for the plan proceeds to be payable to anyone else.Read More
Perhaps the second most attractive annuity feature is the ability to defer taxes during theaccumulation period. As long as the earnings generated remain in the annuity account, no federal or state income taxes are due. Once the money is annutized—given over to theinsurance company in exchange for a stream of payments over a predetermined period of time—a portion of each payment is taxed according to an IRS formula, while another portion is considered a return of premium, assuming premiums were paid with taxable dollars.Read More
Arkansas residents who have state pride and are planning to attend college within Arkansas will be well paid for their state pride. This is because as a way to keep the high caliber higher education students within their state, Arkansas has created some great Arkansas student loan options that are only available to Arkansas residents attending school within the state of Arkansas.
If you are a college student in need of a little extra funding, (and let’s be honest, what college student couldn’t use a little extra tuition money these days?) then these would be some excellent Arkansas student loan options for you to consider.Read More