“The top of the year-end checklist typically includes making certain to send a donation to a favorite charity by Dec. 31.
This year, though, some accountants say you don’t want to make those donations until January — if you’re betting on higher tax rates in 2013.
But what about grabbing some money from an IRA? Will you or an older family member withdraw the entire required minimum distribution from your IRA by Dec. 31? This is one where you don’t want to drag your feet.
Every year, many investors simply miss the deadline for taking the required withdrawals from their IRAs, said Ken Hevert, vice president of personal retirement products for Fidelity.
“It can really get complicated,” Hevert said.
The issue isn’t just that you’re missing out on getting extra money to cover bills. You could be creating a very costly tax headache, too.
Retirees age 70 1/2 and older must follow required distribution rules when it comes to IRAs. The same can apply to a 401(k) if you’re retired and no longer working at that company.
Typically, investors who must take required minimum distributions have until Dec. 31 each year to withdraw the full amount….”
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