Russ Jablonsky, AAMS Financial Advisor 739 Clark St., Medford 715 748 6366 FINANCIAL FOCUS What Should You Know About RMDs? ⢠If I have multiple accounts, do I have to take an RMD from each one? If you are taking RMDs from a traditional IRA, you must calculate each RMD individually, but you can take the total amount from one or more IRAs. If youâre taking RMDs from a 401(k) or similar plan, you must take the RMD from each of your accounts. ⢠How are RMDs taxed? You are typically taxed at your income tax rate on the amount of the withdrawn RMD. You may be able to avoid taxes in a particular year if you transfer your RMDs to a qualified charity in whatâs known as a qualified charitable distribution. ⢠If I inherit an IRA or 40l(k), am I subject lo RMDs? Yes. When you take RMDs from an inherited account, you generally must withdraw all the funds within 10 years, as opposed to over your lifetime, which is the RMD window that applies to your own accounts. The rules are somewhat different if you inherit an IRA or 40l(k) from your spouse. In any case, though, youâll want to consult with your tax advisor about how to take RMDs from an inherited account. If youâre already subject to RMDs, be sure youâve taken them before the year ends. And if you havenât yet started taking RMDs, learn as much as you can about them - because the more you know, the more likely youâll make the right moves at the right time. You may spend many decades contributing to your IRA and 401(k), but eventually you will likely need to take the money out - in fact, you must take the money out or face penalties. What should you know about these mandatory withdrawals? Here are some of the basics: ⢠What are they called? Mandatory withdrawals are technically called required minimum distributions, or RMDs. ⢠When must I take RMDs? If you were born before 1951, youâve probably already begun taking RMDs. If you were born between 1951 and 1959, your RMD age is 73. And if you were born in 1960 or later, your RMD age is 75. You can postpone accepting your first RMD until April I of the year after you reach your RMD age, but this will result in two RMDs for the year. After you take your first RMD, you must take subsequent ones by December 31 of each year. ⢠What penalties will be assessed if I donât take all my RMDs? For every dollar not withdrawn, the IRS will charge a 25% penalty, but this can drop to 10% if you subsequently withdraw the correct amount within two years. ⢠Which accounts have RMDs? RMDs apply to traditional IRAs, as well as other types of IRAs, including SIMPLE and SEP IRAs. RMDs donât apply to Roth IRAs. RMDs also apply to traditional 401(k)s, but not Roth 401 (k)s. ⢠Can I withdraw more than the RMD for any given year? Yes, you are free to take out as much as you want. However, if you take out more than the RMD for one year, you canât apply the excess to the RMD for the next year. ⢠How are RMDs calculated? Typically, your RMDs are determined by dividing your account balance from the prior December 31 by a life expectancy factor published by the IRS. Your financial professional should be able to perform this calculation for you. This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation. Making Sense of Investing 162115 Russ Jablonsky, AAMS Financial Advisor 739 Clark St., Medford 715 748 6366 FINANCIAL FOCUS What Should You Know About RMDs? ⢠If I have multiple accounts, do I have to take an RMD from each one? If you are taking RMDs from a traditional IRA, you must calculate each RMD individually, but you can take the total amount from one or more IRAs. If youâre taking RMDs from a 401(k) or similar plan, you must take the RMD from each of your accounts. ⢠How are RMDs taxed? You are typically taxed at your income tax rate on the amount of the withdrawn RMD. You may be able to avoid taxes in a particular year if you transfer your RMDs to a qualified charity in whatâs known as a qualified charitable distribution. ⢠If I inherit an IRA or 40l(k), am I subject lo RMDs? Yes. When you take RMDs from an inherited account, you generally must withdraw all the funds within 10 years, as opposed to over your lifetime, which is the RMD window that applies to your own accounts. The rules are somewhat different if you inherit an IRA or 40l(k) from your spouse. In any case, though, youâll want to consult with your tax advisor about how to take RMDs from an inherited account. If youâre already subject to RMDs, be sure youâve taken them before the year ends. And if you havenât yet started taking RMDs, learn as much as you can about them - because the more you know, the more likely youâll make the right moves at the right time. You may spend many decades contributing to your IRA and 401(k), but eventually you will likely need to take the money out - in fact, you must take the money out or face penalties. What should you know about these mandatory withdrawals? Here are some of the basics: ⢠What are they called? Mandatory withdrawals are technically called required minimum distributions, or RMDs. ⢠When must I take RMDs? If you were born before 1951, youâve probably already begun taking RMDs. If you were born between 1951 and 1959, your RMD age is 73. And if you were born in 1960 or later, your RMD age is 75. You can postpone accepting your first RMD until April I of the year after you reach your RMD age, but this will result in two RMDs for the year. After you take your first RMD, you must take subsequent ones by December 31 of each year. ⢠What penalties will be assessed if I donât take all my RMDs? For every dollar not withdrawn, the IRS will charge a 25% penalty, but this can drop to 10% if you subsequently withdraw the correct amount within two years. ⢠Which accounts have RMDs? RMDs apply to traditional IRAs, as well as other types of IRAs, including SIMPLE and SEP IRAs. RMDs donât apply to Roth IRAs. RMDs also apply to traditional 401(k)s, but not Roth 401 (k)s. ⢠Can I withdraw more than the RMD for any given year? Yes, you are free to take out as much as you want. However, if you take out more than the RMD for one year, you canât apply the excess to the RMD for the next year. ⢠How are RMDs calculated? Typically, your RMDs are determined by dividing your account balance from the prior December 31 by a life expectancy factor published by the IRS. Your financial professional should be able to perform this calculation for you. This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation. Making Sense of Investing 162115
The Medford Area Middle School Band would like to share a big thank you to all of our business/foundation donors as well as individuals who have supported the program via their Mattress or Kwik Trip Card Fundraiser. Individuals and organizations who have donated to the MAMS band program are: Medford Education Association, The Classes of 67-72, Patrick Marsh Foundation, Weather Shield LITE Foundation, Forward Bank, Nathan Bilodeau, AnnMarie Grant, and Purple Mattress. âIf you see people from these organizations, please thank them! We have been able to raise about $8,500 through donations/grants and $7,000 through fundraisers. The generous support of our community has allowed us to purchase: 2 piccolos, 4 clarinets, 4 alto saxophones, 1 tenor saxophone, 3 trumpets, 3 trombones, and a bass drum stand,â said middle school band teacher Kendra Junk. âThese instruments are going directly into the hands of the students. The best part of being able to provide new instruments is how excited students get when they receive a new and working instrument,â she said. They consistently have instruments that need to be repaired and are often coming back from repair with a higher repair cost than the value of the instrument. They have several instruments in student hands right now that are functioning enough to work but are not in great shape. If you would like to donate to the MAMS band program, would like to read more about the condition of our instruments, or to see the complete list of donors please visit: https://bit.ly/SupportMAMSBand. âAs always thank you for your support of the MAMS Band Program,â Junk said. SUBMITTED
The Medford Area Senior High School Choir traveled to Holy Rosary Catholic Church on March 16 to put on a choir performance. Pieces including traditional arrangements as well as the choir members surrounding the audience with their voices. ALEX WILSON/THE STAR NEWS
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