by Robert Cooper

Q.  Robert, I just turned 70 and a half this year and now I realize that I was supposed to take my Required Minimum Distribution out of my IRA before the end of December.  As I send you this question it is late December and I have been told there is not enough time to get it processed.  Is there anything I can do?  Worried in Winston

A. Worried, the first thing you can do is stop worrying.  Since 2013 is the first year you have to begin taking required minimum distributions (RMD’S), you lucked out this time.  Everyone is given a one-time extension on your first RMD.  As long as you have your RMD withdrawn before April 1st of 2014 you will not incur the IRS penalty.  Here is a very important point, when you contact whichever company is handling your IRA make sure they designate that the distribution is for 2013 and not for 2014.

While on the same subject, if you are not taking RMD’s for the first time and still forget to take a timely withdrawal, you may petition the IRS to wave the penalty.  The IRS says that the penalty may be waived if “the account owner can establish that the shortfalls in the distributions were due to reasonable error and that reasonable steps are being taken to remedy the error.”  To ask for this exception you must file IRS form 5329 and attach a letter of instruction.

On a different note, we would like to thank clients and others who donated canned goods and money for Crisis Control in Kernersville.  You should all give yourselves a pat on the back.  There is no better gift to give than helping someone who needs a hand.

Please keep the questions coming at Robert@CooperCares.com.

For individual appointments call us at 336-993-2012.

Thanks, Robert

If you would like a complimentary one-on-one consultation please contact our office at 993-2012.

Any comments regarding safe and secure investments and guaranteed streams refaer only to fixed insurance products. They do not refer, in any way to securities or investment advisory products. Insurance and Annuity product guarantees are subject to the claims paying ability of the issuing company, and are not offered by Global Financial Private Capital.

Robert Cooper, CRPC, RFC
Registered Investment Advisor Representative

Providing Financial Planning Services in the Triad for over 20 years.

336-993-2012 • www.coopercares.com
935-E Mountain St., Kernersville, NC 27284

Investment Advisory Services offered through Brookstone Capital Management, LLC.