April IRA deadlines fast approaching
As tax day approaches, there are two other April deadlines that may apply to you. If you have an IRA, take note of these dates:
April 1 - If you turned 70½ in 2016 (six months after your 70th birthday), you must take your first required minimum distribution (RMD) from your IRA by April 1. If you do not take this withdrawal by the deadline, you may face a 50% penalty on the amount you should have withdrawn. Unless you are still working, this withdrawal requirement also applies to other types of retirement accounts like a 401(k). It does not apply to Roth IRAs.
April 18 - It's not just the due date for your tax return. April 18 is also the last day to make a contribution to your IRA for the 2016 tax year. You can contribute up to $5,500 if you are under age 50 or $6,500 if you are age 50 or older.
Marking these deadlines on your calendar can help remind you of these key retirement plan dates. Call us if you have questions. We're here to help.