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Brought
to you by:
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| McCormick Klessig & Associates
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About Our Firm:
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McCormick-Klessig & Assoc., Ltd. provides individuals, families, small and medium sized businesses with complete coverage of personal and business risks in all product lines: Commercial Personal Life Accidental and Health ( including group products).
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| QUOTES from
the
Masters... |
| On Kindness |
On Faith |
| "I
believe...that every human mind feels pleasure in doing good to another."
-- Thomas Jefferson
"The
world is my country, all mankind are my brethren, and to do good is my
religion." -- Thomas Paine
"Too
often we underestimate the power of a touch, a smile, a kind word, a listening
ear, an honest compliment, or the smallest act of caring, all of which
have the potential to turn a life around." --
Leo Buscaglia
"Because
the soul has such deep roots in personal and social life and its values
run so contrary to modern concerns, caring for the soul may well turn out
to be a radical act, a challenge to accepted norms." -- Thomas
Moore
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"When
you come to the edge of all the light you know, and are about to step off
into the darkness of the unknown, faith is knowing one of two things will
happen: there will be something solid to stand on, or you will be taught
how to fly." -- Barbara J. Winter
"Certain
thoughts are prayers. There are moments when, whatever be the attitude
of the body, the soul is on its knees." -- Victor
Hugo
"Spiritual
values transcend the material artifacts that we can touch and see.
They take us into the realm of beauty, inspiration and love." -–
Nido Qubein
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Understanding Required Minimum Distributions |
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The objective of the required minimum
distribution rule is to ensure that the entire value of a traditional IRA or
employer-sponsored qualified retirement plan account will be distributed over
the IRA owner's/retired employee’s life expectancy.
When Must
Required Minimum Distributions Begin?
In the case of traditional IRAs, required minimum distributions must begin no later than April 1 of
the year following the year in which you reach age 70-1/2 and must continue
each year thereafter.
In the case of employer-sponsored qualified retirement plans, required minimum distributions must begin by April
1 of the year that follows the later of (1) the calendar year in which you
reach age 70-1/2 or (2) the calendar year in which you retire from employment with
the employer maintaining the plan (unless the plan requires that you begin
receiving distributions by April 1 of the year that follows the year in which
you reach age 70-1/2).
If
you wait until the year following the year in which you reach age 70-1/2 or, in
the case of a qualified retirement plan, retire from employment, you must
receive a minimum distribution on behalf of the previous year by April 1 of the
current year, and a minimum distribution on behalf of the current year by
December 31 of that year.
How Are Required
Minimum Distribution Amounts Calculated?
IRS regulations regarding required minimum
distributions include a "Uniform Lifetime Table" with
"Distribution Period Factors."
The appropriate "Distribution Period Factor," based on your age
in the distribution year, is divided into your account balance as of the
previous December 31 in order to determine your required minimum distribution
for the current tax year.
What Happens if Minimum
Distribution Requirements Are Not
Met?
The difference between the required
minimum distribution you should have received and the lower amount you actually
received is subject to a penalty tax of 50%...an outcome to be avoided! Financial institutions report IRA distributions
to the IRS on Form 5498 and are required to indicate if the IRA is subject to
required minimum distributions.
May I Withdraw More
Than the Required Minimum Distribution?
Yes, although minimizing qualified plan
and IRA distributions may result in substantial tax savings. Consult your financial advisor for a more
in-depth analysis.
NOTE: The above
discussion does not apply in 2009, when required minimum distributions
are suspended. Minimum distribution requirements, however, must be met
again beginning in 2010. In addition, non-deductible Roth IRAs are not
subject to
minimum distribution requirements.
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| MESSAGES
from
the Masters... |
WORDS by Zig Ziglar
Frequently, we become so pragmatic that we fail to be effective. Years ago the editor of the Dallas Morning News
pointed out to the sportswriters that "Bill" was not a suitable
substitute for "William," and "Charlie" was not a suitable substitute
for "Charles."
Taking him literally, one of the sportswriters, in the heyday of Doak
Walker of Southern Methodist University, wrote about an important game.
In his story he pointed out that in the third quarter Doak Walker had
left the game with a "Charles horse." I think you'll agree that the
story lost some meaning with the use of "Charles."
Perhaps the ultimate absurdity occurred in an article in a national
publication when the writer set up the computer to analyze Lincoln's
Gettysburg Address. Incidentally, that address contains 362 words and
302 of them are one syllable. It's simple and direct, but powerful and
effective.
The computer, however, made some recommendations about how the speech
really should have been given. For example, instead of saying, "Four
score and seven years," the computer deemed that approach too wordy and
suggested, "Eighty-seven years." The efficiency in the reduction is
obvious, but the loss of effectiveness, power, drama, and passion is
even more obvious.
When Lincoln said, "We are engaged in a great civil war," the computer
questioned whether the word great was justified. This despite the fact
that our nation suffered 646,392 casualties, including 364,511 deaths.
The computer stated that the sentences were too long, and it criticized
the statement that we could never forget what happened at Gettysburg as
being negative.
I think you'll agree that eloquence and drama, combined with passion,
logic, and common sense, are far more effective in inspiring people to
do great things than technical correctness.
Think about it. Knowing their power, use your words carefully. You'll be a greater contributor to humankind.
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in nature and should not be considered complete information on any
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or concept described. For more complete information, please
contact
my office at the phone number above.
Quest Capital Stratagies
25231 Paseo de Alicia, Suite 110
Laguana Hills, CA 92653-4615
(800) 527-9989
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SIPC is located at www.sipc.org.
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