Let’s Talk IRAs

Of all our clients, there are only a few who do not have at least one IRA account. Of the many that do, few of the IRAs are the same. Some have traditional IRAs and some have Roth IRAs. Some have Simple and some have SEP. All IRAs. Some could have a Beneficiary IRA and others maybe a Beneficiary Roth IRA. Wow!

We could talk about other types of deferred accounts such as 401(k)s, 403(b)s, 457 plans, or TSPs… but let’s not and say we did.

Back to IRAs. Here are three items I wanted to discuss and remind you about:

  • 2020 IRA and Roth IRA Contributions: With the delay of Tax Day to May 17th, you can still make contributions to your IRA and Roth IRA for last year until May 17th. If you have already submitted your tax return and didn’t contribute, you can still contribute but you’d need to do an amended return.
  • QCDs: Qualified Charitable Contributions can be made directly to charities, churches, and schools using your IRA. You must be 70 ½ before making a QCD and the check must come directly from your IRA custodian. For example, if we manage your funds and you have investments in TD Ameritrade, the check to the charity must be issued directly from TD Ameritrade. Remember, the charitable contribution can’t be more than your total RMD amount for that year nor can it exceed $100,000.
  • Required Minimum Distributions: RMDs now begin at age 72. If you were born in 1949 you will begin taking RMDs this year, but you can also hold off until April 1st of next year. If you wait until 2022 to take your first RMD, however, you will also need to take a second RMD by the end of 2022.

Confused? If so, sorry about that. If you have questions or need help, reach out to Kyle, Rob, or me.

Enjoy the weekend…

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