Some tips for dealing with retirement funds

Here are some year-end tips for dealing with retirement funds and retirement fund issues. You want to think these issues through in conjunction with a financial advisor, a tax accountant and an attorney. We offer them in the hopes that you can finish 2009 with a bang that carries over into 2010. They are as follows:

1. Anyone who owns a business which has a calendar tax year has until December 31, 2009 to adopt a qualified plan in order to deduct retirement contributions for 2009. If they miss this deadline, a SEP plan can be established and funded by the due date for filing the plan sponsor’s 2009 tax return (with extensions) – which, if that person is a sole proprietor, could be as late as October 15, 2010.

2. If someone is age 70 1/2 or older and has a Traditional, SEP or SIMPLE IRA, they don’t have to take Required Minimum Distributions (RMDs) for 2009 including the initial RMD which is due April 1, 2010.  They should consider how skipping a distribution this year may impact their 2010 distribution.

3. Everyone should explore the benefits of a Roth IRA. Tax law changes in 2010 will enable everyone to convert to a Roth IRA, which not only provides tax-deferred growth, but also tax-free income in retirement. Your Financial Advisor or Tax Advisor can provide appropriate analysis and discuss the rule changes.

4. Everyone should fully fund their IRA and/or company retirement accounts as soon as possible. Please consult your tax advisor to determine the deadline for contributing to a company retirement plan. Remember that everyone has until April 15, 2010 to fund their IRA for 2009.

Should you have any questions regarding these tips, or need a referral to a qualified financial planner or accountant, please call our office. You may reach us by checking out our website at

Randy Fisher

This entry was posted in Retirement Planning, Tax Planning and tagged , . Bookmark the permalink.

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