If you own or are the beneficiary of an IRA, 401(K) or other retirement plan, review this to avoid an RMD ( required minimum distribution) error. Failure to take at least the RMD amount each year results in a 50% penalty by the IRS !
Photo : https://www.flickr.com/photos/stevendepolo/5437288053 Source: www.irs.gov
That’s April 1st the deadline! DEADLINE: April 1st If you are an IRA owner and turned 70 1/2 in 2015, you have until April 1st, your required beginning date, to take your first required minimum distribution if you did not take it last year. Keep in mind that you still have to take y our 2016 required minimum distribution by the December 31st deadline. DEADLINE: April 18th
Eligible IRA owners have until April 18,2016 to contribute up to $5,500 to their IRA(s) ($6,500 if age 50 or older) for 2015. Remember this is an aggregate limit. April 18th is also the deadline to remove excess contributions made to an IRA(s) for 2015. To avoid the 6% penalty tax, excess contributions must be removed in a timely manner, completed no later than your tax return due date including extensions. And there is one more… health savings account contributions to an approved high-deductible plan. For 2015, if you had self-only HDHP coverage, you may contribute up to $3,350. Certain eligible individuals who were over age 55 at the end of the tax year may increase their contribution by $1,000. If you have family HDHP coverage, you may contribute up to $6,750.
As always consult your tax professional to be and keep tax advantageous!
Rhonda A. Mannes,