RetirementThink

No MRD's For 2009...Here's An Exception

2009-01-05T23:59:58Z

We've been getting a lot of inquiries on the new MRD rules for 2009 and received a frequent question. Fortunately, a recent issue of the Wall Street Journal provides the answer:

If I turned 70½ in 2008 and had planned to take my first withdrawal by the April 1, 2009 deadline, does the new law permit me to skip it?

A: No. The law suspends distributions only for 2009. Although first-timers are allowed to delay 2008's distribution until April 1, 2009, the withdrawal still counts toward your obligation for 2008, Mr. Slott says. So, if you turned 70½ in 2008 and decided to wait until April 1, 2009, to make your first withdrawal, that deadline still applies. To calculate this distribution, you would use your account balance as of Dec. 31, 2007.

2008 Is Over, Thank You..Dow, S&P And Nasdaq Recap

2008-12-31T23:41:49Z

Your 401k May Have Some After Tax Contributions..Think About A Roth

2008-12-29T23:54:54Z

Most contributions that go into your 401k plan or 403b plan are "pre-tax" monies. Some plans allow deferrals above the limits and are ear-marked as "after-tax" contributions. Plan providers will be able to tell you if there are any after-tax monies in your plan. Those after- tax monies may be eligible to be converted to the Roth IRA.

Kiplingers.com explains:

Not all retirement plans allow after-tax contributions. But if yours is among those that do, this is a great way to keep some of your retirement savings growing tax free without paying the usual price of admission to convert to a Roth IRA. Normally, you must wait to switch jobs or retire before you can move money out of your employer-based retirement account. But some plans permit in-service distributions, allowing you to roll over some or all of your 401(k) money to an IRA once you reach age 59 1/2 .

A Cocktail Named After The 401k? Or The Bourbon Bail Out?

2008-12-28T00:13:56Z

Every Friday, the Edison Lounge in Los Angeles transforms itself into a soup kitchen to, in their words, "maintain perspective through this financial crisis and to support those truly in need." Enjoy bathtub gin in the form of "Your 401(k)," or the bourbon "Bail Out," as well as free grilled cheese and tomato soup. 25% of net proceeds go to charity, and you're encouraged to make extra donations on top of tips. With each cocktail downed, drinkers are also encouraged to write down their feelings about the economy.