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Welcome to our minimum distribution calculator. This page calculates the minimum distribution you must take from your IRA in the year you turn 70 ½. You may wait until April 10th of the following year, but you must then take two distributions that year, possibly resulting in unnecessary income taxes.
Failure to take this minimum distribution results in an additional income tax of 50% of the tax due on the minimum distribution. For example, if you were supposed to take a minimum distribution of $100,000 with the resulting income tax of $45,000, your tax penalty would be the $45,000 plus the penalty of half of the $45,000 (or $22,500).
Don't let this happen to you. Please consult an advisor at Lara, Shull & May for guidance before you incur unnecessary tax liabilities.
If you are not yet 70 ½, enter the growth rate you expect your IRA to earn to determine your IRA's expected value at 70 ½.
Most individuals we meet (over 95%) make their spouse the beneficiary of their IRA. This is usually not the most effective way to reduce estate taxes. A properly drawn up trust can help you avoid unnecessary income & estate taxes and ensure that your hard earned retirement assets are passed on to your heirs, rather than some unknown second spouse and/or that person's unknown children. A properly drawn up trust will guarantee that YOUR wishes are carried out.
To receive more information or set up a private briefing with an investment advisor we invite you to contact us. Please call 703-827-2300 or email information@larashullmay.com
TM & Copyright 2002 Lara, Shull & May. All rights reserved.
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IMPORTANT INFORMATION: On calculators which require you to select an anticipated investment return, consideration should be given to factors affecting your potential return such as investment objectives, risk tolerance, and the time horizon for the investment. Remember, past performance is no guarantee of future results. The figures entered on the input page of this calculator are for hypothetical purposes only. You should enter figures that are appropriate to your individual situation. The results provided by this calculator are also intended for illustrative purposes only and accuracy is not guaranteed. This calculator is not intended to offer any tax, legal, financial, or investment advice and does not assure the availability of or your eligibility for any specific product offered through Lara, Shull & May, LLC its affiliates, or any other institution, nor does this calculator predict or guarantee the actual results of any investment product. The terms and conditions of products offered by institutions will differ and may affect the results of the calculator. Neither Lara, Shull & May, LLC nor any of its affiliates offer or provide any investment advice or opinion regarding the nature, potential, value, suitability, or profitability of any particular investment or investment strategy discussed therein. You shall be fully responsible for any investment decisions you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs. Please consult with qualified professionals to discuss your situation.
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