Taking Distributions from Retirement Plans

Check these resources for more information about the tips covered in the workshop.

Early Distribution Penalty Tax

• Topic 558 – Additional Tax on Early Distributions from Retirement Plans Other Than IRAs https://www.irs.gov/taxtopics/tc558.html
• Retirement Topics – Exceptions to Tax on Early Distributions https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions

Required Minimum Distributions

• IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs), https://www.irs.gov/pub/irs-pdf/p590b.pdf

Waiver of penalty for failure to take your Required Minimum Distribution

• Code of Federal Regulations, https://www.law.cornell.edu/cfr/text/26/54.4974-2)
• How to request a waiver – see Natalie Choate’s article at http://www.morningstar.com/advisor/t/110091243/how-to-request-a-waiver-of-the-rmd-50-penalty.htm

Indirect rollovers: If you miss the 60-day deadline

• Internal Revenue Bulletin: 2016-37, Waiver of 60-Day Rollover Requirement,  https://www.irs.gov/irb/2016-37_IRB/ar09.html
• Edd Slott And Company, LLC, 10 Things You Should Know about the New Fix for Late IRA Rollovers,  https://www.irahelp.com/slottreport/10-things-you-should-know-about-new-fix-late-ira-rollovers?

Qualified Charitable Distributions

• Nerd’s Eye Blog by Michael Kitces, Rules And Requirements For Doing A Qualified Charitable Distribution (QCD) From An IRA, https://www.kitces.com/blog/qualified-charitable-distribution-qcd-from-ira-to-satisfy-rmd-rules-and-requirements/

Why take voluntary distributions from retirement accounts & delay Social Security

• Lance Ritchlin, Why 401k And Social Security Coordination Is Critically Important, 401kspecialist.com, http://bit.ly/Why401k (This article is targeted at financial advisers, but you may still find some of the information helpful.)
• James I. Mahaney and Peter C. Carlson, Rethinking Social Security Claiming in a 401(k) World, Pension Research Council Working Paper, The Wharton School, University of Pennsylvania. Available at http://bit.ly/RethinkSocSec. (This paper was written before the recent changes in Social Security claiming strategies and therefore contains some dated information. However, it is still the most thorough discussion on this topic that I am aware of.)

Asset Location

• Karen Chan, University of Illinois Extension Plan Well – Retire Well Blog
  • Asset Location, http://web.extension.illinois.edu/cfiv/eb141/entry_4132/
  • A Real Live Example of Rebalancing + Asset Location, http://web.extension.illinois.edu/cfiv/eb141/entry_4145/

New Tax Law Effective in 2018

• Karen Chan, University of Illinois Extension Plan Well – Retire Well Blog
  • How will the Tax Cuts & Jobs Act of 2017 Affect you? 3 part series. Links to 1^st 2 are included in the 3rd post at http://web.extension.illinois.edu/cfiv/eb141/entry_13259