LEVY COUNTY JOURNAL EDITORIAL THURSDAY, JANUARY 31, 2008 Page 3 — EDITORIAL — FINANCIAL By MEGAN QUINN CONTRIBUTING WRITER Will you turn 70% this year? Assuming you have retired, you will likely be required to start drawing a minimum amount of money out of your retirement accounts soon, and you should make these important decisions regarding the distributions before the end of this year. ; The general rule for required minimum distributions is fairly straightforward. You must begin drawing a minimal amount of money out of your regular individual retirement accounts (IRAs) by the end of the year you turn 70%, or no later than April 1 of the following year. You must continue to make minimum withdrawals no later than December 31 each year thereafter until your death or your retirement accounts are drained. You will pay income taxes on all earnings and pre-tax contributions at your regular income tax rates. For example, let’s say you turn 70% on October 1 of this year. Then you must start making minimum withdrawals by April 1, 2009. However, if you turn only age 70 on October 1, you can wait until April 1 of 2010, because you won’t be 70 % until 2009. In spite of this general rule, there are some exceptions. One exception is that you do not have to take minimum distributions from a Roth IRA at any time up to your death. You can pass it on to your heirs, who will then have to begin minimum withdrawals. You also do not have to start taking minimum withdrawals from your current employer’s qualified retirement plan if you are still working at age 70%. You can wait until you retire. However, you cannot delay distributions beyond age 70% if you own at least five percent of your business, have a simplified employee pension plan (SEP) or have a savings incentive match plan for employees (SIMPLE IRA). One of the next decisions you must consider is whether you want to delay starting the minimum distributions until April 1 of the year after you turn 70%. By waiting, the money has that much longer to grow tax-deferred, which is usually a good thing. On the other hand, this strategy could boost you into a higher tax bracket for the year. Say you wait until April 1 next year to take your first distribution. Technically, that distribution is for the year 2009. Your next distribution will be for 2010. You can’t delay that distribution into April 1 of 2010. That must be made by December 31, 2009. Consequently, you will have made two minimunt? distributions in the same tax year. You’ ll want to run the numbers by your tax advisor to determine whether the increased earnings from the delay exceed the increased taxes. Usually the won’t. | Also, if you neglect to make your withdrawals by the required beginning date, or you don’t.take out enough, you’ll pay a penalty of 50 percent on the difference between what you took out and what you should have taken out. Finally, understand that the minimum required distribution rule is a minimum, not a maximum. That is, you can take out more than the minimum required amount in any | given year because you need or want the money. You can empty the entire account at one time if you wish because you are not locked in to only the minimum withdrawal. Megan Quinn is a Registered Representative of INVEST Financial Corporation with an office located at Capital City Bank at 2012 N. Young Blvd., Chiefland, FL’ 32626. Call her at 352.490.9004 or toll-free at 866.906.5765. a This information is general in nature and should not be construed as tax advice. INVEST Financial Corporation does not provide tax advice. Please consult your tax adviser for guidance on your particular situation. Megan Quinn is an Investment Executive with Capital City Banc investments and a Registered Representative of INVEST Financial Corporation (INVEST). Securities, advisory services and insurance products are offered through INVEST, member FINRA/SIPC, a registered Broker Dealer and registered Investment Advisor and affiliated insurance agencies. INVEST is not affiliated with Capital City Banc Investments, Capital City Trust Company or Capital City Bank. Not FDIC Insured | Not Bank Guaranteed | May lose value LELIERS TO THE EDITOR. 1) Letters should be 500 words or fewer. Letters may be edited for space ane clarity. Letters longer than 500 words may be considered for guest columns. 2) Letters must be signed and bear the signature of the author. Please include a daytime phone number (not for publication). | 3) Submit your letter by noon Friday. You may e-mail it to editor@levyjournal.com, bring it to either of our offices or mail it in. 4) neers by the same author will be considered for publication every 21 ays. 5) The Levy County Journal reserves the right to edit letters and also to not publish letters submitted. 6) No unsigned letter will be printed. For appointment call 529-0681 125 SW 7th Street, Williston FL 32696 ¢ Female Care ¢ Lab Service ‘It’s Our Nature To Care” ~ Komal Lamichhane, MD Internal Medicine In Clinic -Monday and Friday 8-5 - Simona Necsutu, MD Family Practice __ In Clinic -Tuesday Wednesday, Thursday 8-5 Stacy Butler, ARNP Full Time Emergency Room Nature Coast Regional Hospital * Family Practice Medicare & Medicaid Accepted Let’s Save “Old Folks at Home” Because Governor Charlie Crist, no doubt pandering to South Florida influences, decides that Stephen Foster’s “Old Folks at Home” wasn’t good enough for his inaugural ceremony, Florida’s official state song may be floating way down upon the Suwannee River. Two senators plan to sponsor legislation to scuttle the state song. The popular song adopted as the official state song of Florida in 1935 was updated in 1978 with the dedication of the new capitol building to remove potentially sensitive language. But, that’s not good enough, according to Senator Tony Hill of Jacksonville and Representative Ed Homan of Temple, who plan to sponsor the legislation to replace it. Hill and Homan and members of the black caucus feel it’s time to kill the song. Last year, a Florida education association sponsored a song contest, selected three songs, and put them to an online vote to succeed “Way Down Upon the Swanee.” About 8,000 participated and the new song with the most online votes was “Florida Where the Sawgrass Meets the Sky.” That is the song the two politicians will introduce as the replacement for “The Swanee River (Old Folks at Home)” during the 2008 legislative session, which begins in March. Trouble is, every other online poll since the announcement for the contest was made overwhelmingly goes for keeping “Old Folks at Home.” We around here agree. It’s not too late. Let’s stop this excessive political correctness. Let’s add our voices to the chorus for keeping “Way Down Upon the Swanee River” as our state song. Patriotic southerners should contract their state congressman and register your “vote.” Contact your state senators and representatives: Will S. Kendrick (850) 488-7870 Ron Schultz (352) 860-5160 District Office: . District Office: PO Box K PO Box 138 ° Carrabelle, FL 32322-1211 Homosassa, FL 34487-0138 Phone: (850) 697-5115 Steve Oelrich (352) 375-3555 Larry Cretul (850) 488-0887 . District Office: District Office: 4131 Northwest 28th Lane, Ste 4 6911 SW Highway 200 Gainesville, FL 32606 Ocala, FL 34476-9210 oelrich.steve.web@fisenate.gov Phone: (352) 873-6564 ; The Politics of Poreciosure Charles S. “Charlie” Dean, Sr. (352) 873-6513 6911 S.W. Highway 200 Ocala, FL 34476 dean.charles.web@ flsenate.gov “Copyrighted Material Syndicated Content Available from Commercial News Providers” «Internal Medicine ¢ Sports Physicals ° X-Ray _ Permanent Make-Up Models NEEDED NOW! Call 352.529.0211 Jeremie Young, MD Family Practice In Clinic -Monday and Friday 8-5 _L>> _