Two kinds of retirement plans are based around the individual retirement account (IRA). One is the SEP IRA, and the other is the SIMPLE IRA. They are both common in small businesses, and many of you don't have them. As a result, I'm not going to discuss many of the plan details except one very important fact.
When you work for a company as an employee (not an owner), you are allowed to let your retirement account grow until you actually retire, even if you are older than
70 1/2. However, if you have a SEP IRA or a SIMPLE IRA, you MUST begin taking required minimum distributions (RMDs) from them at age 70 1/2, like they were traditional IRAs, even if you are still working for the company. Be careful of this, as many people, and even some advisors, aren't aware of the law. Talk with your financial planner and make sure you are following the rules!
Be Prosperous!
Peggy
No comments:
Post a Comment