Once you retire or when you are close to retirement there are several dates this year that you should plan for. The purpose of this piece is to summarize the dates/deadlines for you to plan for. If you have any questions, please give us a call or Ask A Question.

January 1st

There are two different ages that can start to get retirement benefits:

  • If turning age 62 or older you may be able to begin claiming Spousal Benefits from Social Security if your spouse has begun taking benefits. However, if you were born on January 1, 1954 or earlier, you may want to wait until at least your Full Retirement Age that is typically age 66. If you wait until age 66 or later, you may be able to switch to your own Social Security benefits while they continue to grow until your reach age 70.
  • If turning 59 ½ in 2016, start planning for taking IRA distributions. On the date you turn 59 ½, you can start taking distributions from your IRAs without a 10% penalty.

January 15th

  • If you have not withheld enough for taxes in the prior year, January 15th is the time to file a final estimated tax payment for the 2015 tax year. You can reduce or eliminate your need to pay estimated taxes if you have more taxes withheld from their retirement plan distributions, pension payments, and Social Security Benefits.

April 1st:

  • If turned 70 ½ in 2015 must take your first required minimum distribution (RMD) from your IRA, 401(k) or other traditional retirement accounts by April 1, 2016. However, if you wait until then (vs. taking it in the year you turned 70 ½, will have to take a second distribution by Dec. 31, 2016, and by each Dec. 31 thereafter. The penalty for missing an RMD is 50% of the amount that was not withdrawn.

April 18th (April 15th falls on the Emancipation Day):

This is the filing deadline for:

  • Filing your federal tax return (1040,etc.) unless you file for a six month extension. Remember that you owe the taxes even if you
    file an extension (otherwise you may pay penalties and interest).
  • Filing your first Quarterly Estimated Federal Tax Payment for 2016.
  • Contributing to a Traditional or Roth IRA for anyone in your family that is still working.

April 30th:

  • Due to tax law changes in late 2015, April 30th is the deadline to file and suspend Social Security benefits under existing rules for clients who are 66 or older is May 1, 2016. That allows workers to trigger benefits for a spouse while their own retirement benefits continue to grow by 8%per year up to age 70. Beginning May 1, no one will be able to collect Social Security benefits during a suspension period, and the ability to request a lump sum payout of suspended benefits will disappear.

June 15th:

  • Filing your second Quarterly Estimated Federal Tax Payment for 2016.

September 15th:

  • Filing your third Quarterly Estimated Federal Tax Payment for 2016.

October 15th:

  • Open enrollment begins for Medicare Advantage Plans, Part D Prescription Drug Plans, and ends Dec. 7. Since all of these plans can change their list of covered drugs and prices from year to year, all retirees should review their coverage and shop for best-priced plans.

October 17th (typically October 15th)

If you filed for a six-month extension, your 2015 income tax return is due Oct. 17 — two days later than usual because the normal Oct. 15 deadline falls on a Saturday. So by this date you must:

  • File your tax return and pay any remaining taxes due.
  • Recharacterized (undo) any 2015 Roth Conversion that was converted from a Traditional IRA during 2015 to avoid paying tax on your 2015 return. This may be beneficial if you lost money in the IRA since conversion.

December 31st:

  • Although you should have started sooner, December 31st is the deadline for several tax moves including taking annual required minimum distributions from retirement plans, making charitable donations that qualify for a tax deduction if you itemize, and selling depreciated securities that can be used to offset investment gains.

 

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IMPORTANT DISCLOSURES

Financial Planning and Investment Advice offered through Avidian Wealth Management (STA), a registered investment advisor.

STA does not provide tax or legal advice and the information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters or legal issues, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

As always, a copy of our current written disclosure statement discussing our services and fees continues to be available for your review upon request.

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Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Avidian Wealth Solutions, LLC), or any non-investment related content, referred to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Avidian Wealth Solutions, LLC. Please remember to contact Avidian Wealth Solutions, LLC, in writing, if there are any changes in your personal/financial situation or investment objectives to review/evaluating/revising our previous recommendations and/or services. Avidian Wealth Solutions, LLC is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. A copy of Avidian Wealth Solutions, LLC’s current written disclosure statement discussing our advisory services and fees continues to remain available upon request.

Financial Planning and Investment Advice offered through Avidian Wealth Solutions (Avidian), a registered investment advisor. Avidian does not provide tax or legal advice and the information presented here is not specific to any individual’s circumstances. To the extent that this material concerns tax matters or legal issues, it is not intended or written to be used, and cannot be used, by a taxpayer to avoid penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

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