By Jordan Dechtman, Wealth Management
11/09/2010 It’s almost time to throw away that 2010 calendar. As you put birthdays, anniversaries and other important dates on your new calendar, you might want to include reminders about certain retirement tax deadlines throughout the year.
Dec. 31, 2010 – You might want to note this reminder before the rush of the holiday season.
· Contributions to 401(k) and 403(b) qualified retirement plans must be deposited by this date to qualify for a 2010 tax break.
· In addition, retirees over age 70 ½ must take their required minimum distribution from pre-tax IRAs and 401(k)s before the end of the year. Failing to take the correct amount could result in a 50 percent tax penalty plus the payment of regular income tax on the amount.
· One more deadline specifically for 2010 – if you plan to convert a pre-tax IRA or traditional 401(k) to a Roth 401(k) in the current tax year, you must initiate that conversion by Dec. 31. For 2010 only, you can choose whether to pay the income tax on the transfer all in 2010 or split the tax bill and pay half in 2011 and the other half in 2012. The split tax payment option is only available for 2010 transfers.
April 1, 2011 – Those who turn 70 ½ in 2010 can delay their first required minimum distribution until April 1, 2011. Delaying the distribution, however, means two required distributions in 2011 – the 2010 withdrawal before April 1 and the 2011 withdrawal by Dec. 31.
April 15, 2011 – Your tax return is due, of course, unless you file for an extension. In addition, this is the last day to make IRA contributions for the 2010 tax year. If you make a contribution between Jan. 1 and April 15, 2011, make sure you note on your check which tax year it should be credited toward – otherwise, the financial institution will assume the current year (2011).
Our office will help you stay on top of these deadlines, and we can work with your accountant to execute any investment actions related to your tax strategy. Call your personal financial advisor, Jordan, at 303-741-9772, email him at Jordan@JordanDechtman.com or visit our website at www.JordanDechtman.com if you have questions or to schedule a joint appointment with your tax advisor.
About Jordan Dechtman Wealth Management. Jordan Dechtman Wealth Management is an independent Colorado financial services firm, serving clients since 1984. Jordan Dechtman Wealth Management helps you plan, predict, protect, your future one day at a time.
To learn more about the Jordan Dechtman Wealth Management difference, please contact Jordan Dechtman Wealth Management at 303.741.9772 or www.JordanDechtman.com.
Member: FINRA-SIPC
Phone: 303.741.9772
6025 S Quebec Street, Suite 170
Centennial, CO 80111
PR Contact: Jordan Dechtman
Jordan@JordanDechtman.com
www.JordanDechtman.com
Jordan Dechtman, Wealth Management
A strong relationship with a competent, caring and thorough independent investment advisor is the best way for you achieve your most important financial goals. At the same time, you want the convenience and comfort of world-class client service. Jordan Dechtman Wealth Management structures its busin…
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