reduce taxes

Taking Distributions Early

Based on what we just covered about wanting to defer distributions to defer taxes, why would anyone in their right mind take distributions early?...
ira retirement

Mandatory Distributions

IRS imposes some stiff penalties if you miss your required minimum distributions. If you are the owner of a traditional IRA, you must start receiving...
roth distributions

Roth Distributions

We talked about Roth conversions earlier. Now let’s look at how you get the money out of a Roth. You first want to do...
rule 72t

Apply Rule 72t

There are three ways to calculate 72(t) distributions. The Minimum Distribution Method is calculated the same way as required minimum distributions when account owners reach...
retirement party

Retiring or Leaving the Company

Whether you are retiring or changing jobs, you need to know what to do with your employer sponsored retirement plan before your leave. Once...
prorata rule

The Pro Rata Rule

It’s not uncommon that people can have both pre-tax dollars and post-tax dollars in their IRAs or qualified plans. This happened under the following...

Pre-59 1/2 Distributions

You may be among those that retire early and want to use your retirement funds. The problem is, though you’ll have to pay the...
required minimum distribution table

Required Minimum Distribution Table

There is not one required minimum distribution table - there are actually three. The required minimum distribution table to be used is different for each circumstance: If you...
distribute policy

Distribute the Policy from the Plan

This is called a linked distribution. You don’t cash in the policy. You have the insurance company change the ownership from your retirement plan...