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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10506
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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i will be 70 1/2 in June of 2014. i know that i need to take

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i will be 70 1/2 in June of 2014. i know that i need to take money out of 2 of my annuity and 401 acct. can i take from my 401 and pay what i will owe from my annuity? what form would i use to file with the IRS showing that i have met both withdrawals?

Lane :

Hi,

Lane :

You will get a 1099-R (and the IRS will as well).

Lane :

This is what will tell them that you have taken your RMD (Required Minimum Distribution)

Lane :

That will be reinforced again, when you file your 2014 taxes and you have use that 1099-R to include the income on your tax return

Lane :

And yes, as long as you take enough out to satisfy the minimum required by adding up all of the bakances, you can take the amount out of either IRA/401(k) etc.

Customer:

ok, do i pay at the time of tax filing and claiming the money the % for taxes or will the financial institute send me the money less the 10% withholding for the tax. if i take the RMD from the 401, will this satisfy the other financial institute. OR do i receive all the money and i pay the 10% tax when i file my tax return?

Lane :

Its really just like wages ... If you have taxes withheld, that will be on the 1099, to offset the taxed owed at tax time... One thing you have to watch, is that sometimes a 401(k) provider will withhold 20% as a default ... so, since there's no 10% penalty any more (and if you're not IN the 20% bracket) you may actually end up getting a refund

Lane :

But as with ALL taxes they arent really PAID until you do your taxes, BUT there can be withholding, against the distribution, that will offset the tax owed

Customer:

ok so i should talk to the 401 wells fargo people and see if they withhold 20% .

Lane :

Exactly ... There should actually be a box for than when you fill out the distribution request, where you can tell them how much to withhold

Customer:

ok. is everything all right with my payment? ths card is in my wifes name. dilia m chambers.

Lane :

It's just that if you do it (the actual withdrawal request) over the phone (some have that ability) if they don't ask or if you don't specify, it will DEFAULT to 20%

Customer:

i understand .

Lane :

Yes,, the experts here don't really deal with that part... customer service does... but if we're talking, everything's ok

Customer:

ok you have been a big help.

Lane :


If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better … That's the only way they will pay us here.



HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question.



 

Lane :

Thank you so much!

Lane :

By the way, you can come back to this any time by going to JustAnswer

Lane :

OR you can save it as a favorite in your browser (bookmark)


Hi Carl,

... just checking back in here, as I never saw you come back into the chat.

Please let me know if I can help further.

By the way, if you click on this link: ... http://apps.finra.org/Calcs/1/RMD ... it will take you to a calculator for calculating your required minimum distribution.

Glad I could help,

Lane

Lane and other Tax Specialists are ready to help you
Customer: replied 3 years ago.

you have provided excellent service. thank you. i tried to reply andsubmit but it would just freeze up.


Carl

Hmm, I think there's a way to rate, (by clicking on a smiley face?)

If you can't figure it out that's ok, Since you've made the statement here, I'll be OK.

Thanks again!

Lane