• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Any tax impact if I don’t take IRA distributions in ’09?

by on
in Small Business Tax

Q. I’m not taking my required IRA distribution for 2009. But could this have other tax repercussions? O.W., Louisville, Ky.

Possibly. If you’ve taken distributions in the past, you might be assessed an estimated tax penalty if you’re not careful. Reason: With a required minimum distribution made late in the year, you’re treated as having paid the tax withheld in four equal installments. To avoid potential problems if you don’t take an RMD this year, make sure you pay the required tax for each quarterly due date.

The installment for the first quarter is due on April 15, 2009 (the same date as the deadline for filing 2008 returns).

Alternatively, you could arrange to have tax withheld from your Social Security benefits. To begin withholding, file Form W-4V, Voluntary Withholding Request. Find it at www.irs.gov/pub/irs-pdf/fw4v.pdf.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/26839/any-tax-impact-if-i-dont-take-ira-distributions-in-09 "

Related Articles...

    No matches

Leave a Comment