Penalty for early withdrawals from pension plans or IRAs prior to attain age 59 1/2. If you make withdrawal before attained the required age, you will be penalized 10% of the amount withdraw.
After tax IRA. If you have an after tax IRA, you need to keep track of your basis on the IRA by filing Form 8606. Why?. The IRS needs to know the after tax portion of your IRA, and so do you. You do not want to pay taxes a second time, Do you?
Rollover a 401K and/or a traditional IRA. Generally, do not result in a taxable transaction if is roller over within 60 days from the distribution date.
What is the date you should start receiving your minimum required distributions (MRD) payments after reaching 70 1/2? If you reach 70 1/2 in March 5, 2007 (or any date in 2007), you should begin making your 1st MRD by April 1, 2008 , and his/her second distribution by Dec. 31, 2007. VERY IMPORTANT. (Exceptions apply.)
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