Saturday, December 3, 2016
1012 C Street  •  Floresville, TX 78114  •  Phone: 830-216-4519  •  Fax: 830-393-3219  • 
holidayextravaganza2016.pdf

WCN Site Search


Preview the Paper Preview the Paper

Preview this week's Paper
A limited number of pages are displayed in this preview.
Preview this Week’s Issue ›
Subscribe Today ›

Lost & Found

Found: Red Chihuahua, male, friendly but frightened, need to find his owner, in Floresville. 830-534-6413.
*Includes FREE photo online! mywcn.com/lostandfound
Lost: Male Great Pyrenees, all white, double dew claws on back legs, sweet, shy, not aggressive, Nov. 10, C.R. 404/405, neighbors heard 2 shots, any information appreciated. 830-393-0801.
More Lost & Found ads ›

Help Wanted

ENTRY LEVEL HEAVY equipment operator career. Get trained - Get certified - Get hired! Bulldozers, backhoes, and excavators. Immediate lifetime job placement. VA benefits. 1-866-362-6497.
Your #1 Advertising Resource! Call 830-216-4519.
More Help Wanted ads ›

Featured Videos





Video Vault ›

South Texas Living


Withdrawing IRA, 401(k)




E-Mail this Story to a Friend
Print this Story
Jim Miller
November 18, 2015 | 2,094 views | Post a comment

Dear Savvy Senior,

Can you give me the details on required IRA and 401(k) distributions? I turned 70 this year, and want to be clear on what I’m required to do, and when I’ll have to do it.

Planning Ahead

Dear Planning,

Here’s what you should know about required retirement account distributions along with some tips to help you avoid extra taxes and penalties.

RMD Rules

Beginning at age 70½, the IRS requires all seniors that own tax-deferred retirement accounts must start taking annual required minimum distributions (RMDs), and pay taxes on those withdrawals. The reason: The IRS doesn’t want you hoarding your money in these accounts forever. Distributions are taxed as income at your ordinary income tax rate.

There are, however, two exceptions. Owners of Roth IRAs are not required to take a distribution, unless the Roth is inherited. And if you continue to work beyond age 70½, and you don’t own five percent or more of the company you work for, you can delay withdrawals from your employer’s retirement plan until after you retire. But if you have other non-work-related accounts, such as a traditional IRA or a 401(k) from a previous employer, you are still required to take RMDs from them after age 70½, even if you’re still working.

RMD Deadlines

Generally, you must take your distribution every year by Dec. 31. First timers, however, can choose to delay taking their distribution until April 1 of the year following the year you turn 70½.

Be careful about delaying, because if you delay your first distribution, it may push you into a higher tax bracket because you must take your next distribution by December 31 of the same year.

Also note that you can always withdraw more than the required amount, but if you don’t take out the minimum, you’ll be hit with a 50 percent penalty on the amount that you failed to withdraw, along with the income tax you owe on it.

Distribution Amounts

Your RMD is calculated by dividing your tax-deferred retirement account balance as of Dec. 31 of the previous year, by an IRS estimate of your life expectancy. A special rule applies if your spouse is the beneficiary and is more than 10 years younger than you.

IRA withdrawals must be calculated for each IRA you own, but you can withdraw the money from any IRA or combination of IRAs. 403(b) accounts also allow you to total the RMDs and take them from any account or combination of accounts.

With 401(k) plans, however, you must calculate the RMD for each plan and withdraw the appropriate amount from each account.

To calculate the size of your RMD, you can use the worksheets on the IRS website -- see irs.gov/Retirement-Plans and click on “Required Minimum Distributions.” Or, contact your IRA custodian or retirement-plan administrator who can do the calculations for you.

For more information, call the IRS at 1-800-829-3676 and ask them to mail you a free copy of the “Distributions from Individual Retirement Arrangements” (publication 590-B), or see irs.gov/pub/irs-pdf/p590b.pdf.

Jim Miller is a contributor to the NBC “Today” show and author of The Savvy Senior. Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior.org.
 

Your Opinions and Comments


Be the first to comment on this story!


You must be logged in to post a comment.




Not a subscriber?
Subscriber, but no password?
Forgot password?

South Texas Living Archives


Full article available to Wilson County News subscribers only. Click here to subscribe. Ballet school plans Dec. 3 performance (November 30, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Celebrate the holidays at Christmas Along the Corridor (November 30, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Church plans Children’s Christmas Party (November 30, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Coca-Cola tray (November 30, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Counting our blessings for the wonderful care from the VA, part II (November 30, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Elmendorf to offer parade, festivities (November 30, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Experience O’ Bethlehem at St. Ann’s (November 30, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Happy 10th birthday, Mu Chi! (November 30, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. LV Lions Craft Show (November 30, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Make memories at River Bend Rejoice (November 30, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Recalling the community that once was Camp Ranch (November 30, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Rock ’n’ Roll Marathon (November 30, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Sheriff Santa Soup Kitchen is Dec. 4 (November 30, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Shop LVUMC annual Christmas Bazaar (November 30, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Stockdale FFA honors former students with tree dedication (November 30, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Stockdale Main Street Christmas Dec. 3 (November 30, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Stockdale Masonic Lodge plans Pancake Breakfast (November 30, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. There’s no excuse for going hungry (November 30, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Yulefest in Seguin Dec. 4 (November 30, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. ‘Enjoy Hometown Christmas Cheer’ in Floresville Dec. 9 (November 30, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Alone for the Holidays (November 23, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Apply for upcoming Master Gardener class (November 23, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Arrange a phone call from Santa (November 23, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Bishop honored for promotion of Polish heritage (November 23, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Christmas on the Svoboda farm in the 1920s (November 23, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Food Addicts in Recovery Anonymous offers free meetings (November 23, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Get to dancing at the Floresville Opry Christmas Spectacular! (November 23, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Heartwarming holiday recipes from Wilson County cooks (November 23, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Holiday Covered Dish Dinner (November 23, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Letters from Wilson County, Part II (November 23, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Library’s grand reopening set (November 23, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Lutheran church plans Christmas Market (November 23, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Mesquite Traildrivers Craft Show, Cook-off is Nov. 26 (November 23, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Photo exhibit shows Opry in its prime (November 23, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Retired school group to meet in La Vernia (November 23, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. St. Ann’s invites women to day retreat (November 23, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Teen MOPS plans meetings (November 23, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Trinket box (November 23, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Army drafts Elvis, fans get ‘All Shook Up’ (November 16, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Chalkware dog (November 16, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Church Thanksgiving Service (November 16, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Community Thanksgiving Service is Nov. 20 (November 16, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Counting our blessings for the wonderful care from the VA, part I (November 16, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Donate to ‘Fill The Bed’ through Nov. 17 (November 16, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Don’t spend it all in one place (November 16, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Enjoy a free Thanksgiving Feast Nov. 24 (November 16, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Get your turkey dinner in St. Hedwig (November 16, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Hear ‘Sounds of the Season’ in Boerne cave (November 16, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Jubilarians honored for milestone anniversaries (November 16, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Lone Star Greys to honor members (November 16, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. San Antonio Stock Show & Rodeo releases 2017 entertainment (November 16, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Save the date for Roger Winkler Music Fest! (November 16, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Tickets on sale for SS Museum Banquet (November 16, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. TOPS to meet Nov. 17 (November 16, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Trot with Road Runners group (November 16, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Young ‘phenom,’ Freddy Amaro, is taking his best shot (November 16, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Barbecue benefit to honor veteran (November 9, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Battling heart disease in women (November 9, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Enjoy Farm Day at Mission San Juan (November 9, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. FHS class of ’53 reunites (November 9, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Flower garden ashtray (November 9, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. La Vernia drum major keeps the beat (November 9, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Medicare Open Enrollment (November 9, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Pardon our dust! New mywcn.com under construction (November 9, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Participate in an Immersive Music Experience (November 9, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Pecan Jubilee packed with free fun (November 9, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Post 38 plans Spaghetti Dinner (November 9, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Poth pitcher pushes to new limits (November 9, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Register to Tee Off For Teachers (November 9, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Save your spot for Acoustic Music Camp (November 9, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. See Shakespeare in the Park (November 9, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Voices and laughter ring down through the years (November 9, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Alamodome to house Music for All’s Bands competition (November 2, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Art deco (November 2, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Black Hill turkey dinner is Nov. 6 (November 2, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Chili & Bean Cook-off is Nov. 12 (November 2, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Craft show, cook-off seeks vendors, grillers (November 2, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. En pointe – turning dreams into dancing (November 2, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Get crafty at LVISD Community Education classes (November 2, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Helping ancestors rest in peace (November 2, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Learn how to propagate native plants (November 2, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Oak Hills Church plans Fall Sale (November 2, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Recalling the times and people with polio (November 2, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Register for Pecan Jubilee bake-off (November 2, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Sculpture exhibit entries (November 2, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. See the Alamo Metro Chorus in ‘Music Con’ (November 2, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Seniors as roommates (November 2, 2016)
Full article available to Wilson County News subscribers only. Click here to subscribe. Walk to help end hunger Nov. 6 (November 2, 2016)
WCN Photo Contest HHF
WWII Clippings HHF
Coupon Q&A HHF-right