Tax Alert – 2 IRA deadlines approach –
Do either of these IRA deadlines apply to you or your family?
Deadline #1 – April 1, 2011, is the final date by which you must take your first IRA distribution if you turned 70½ last year. If you fail to take your distribution by this deadline, you face a 50% penalty tax on the amount you should have withdrawn. The requirement doesn’t apply to Roth IRAs, but unless you’re still working, it does apply to your other retirement plans.
Deadline #2 – April 18, 2011, is the last day you can make an IRA contribution for the year 2010. Remember, the 2010 contribution limit is $5,000 if you’re under age 50 and $6,000 if you’re 50 or older.
If you need more information or assistance, contact our office.