Women and Money Conference

Lynn Shepherd, CFP - Ohio Women and Money Instructor

The Women & Money Conference sponsored by the Ohio Treasurer’s office was held today at the Copley Fairlawn High School in the Akron, Ohio area. What an honor it is to teach at this conference.

I have been an instructor for the Women and Money workshops since 2003 and always love the interaction with the women who have chosen to take the time out of their busy days to attend the workshop. They come to learn, to  take control, to become money savvy. Today was no exception.

I taught two Elder Care Classes which focused on retirement concerns. Topics included estate planning, taxes, income strategies, protection of assets, understanding ROTH and Traditional IRA’s, and long term care issues. Wow! Quite a lot to cover in just an hour’s time.

I’ll be sharing some of the top points we discussed as well as answers to some of the questions asked.  Ask questions.  We’ll answer. You can either use the Contact Us form or the comments section below.

Required Minimum Distributions at 70 1/2

One of the more interesting questions asked today involved taking a required minimum 401k distribution. More specifically, if you happen to still be working at age 70 1/2 (wow!) , must you take your required minimum distribution from your 401k plan?

The answer is no … IF

• You are still working,
• Have money in your current employer’s retirement plan, and
• Are not more than a 5% owner of the company.

your money can remain within the 401k plan.  The required minimum distribution rules do not apply until you reach age 70 1/2 or retire, whichever occurs later.

Traditional IRA Distribution Requirements

However, required IRA distributions are treated differently. If you own a traditional IRA, you must (as in no exceptions) begin your required minimum distributions upon reaching 70 1/2 or be faced with a stiff 50% penalty. The IRS imposes this penalty on the amount that should have been withdrawn.

EDIT: 2009 IRA RMDs have been waived because of the stock market declines

What about ROTH IRA Advantages

A major advantage of owning a ROTH IRA is that the the ROTH is not subject to minimum distribution rules. Another advantage is the tax-free growth of a ROTH. But we’ll talk more about ROTHs later.

Have questions?  We’ve got answers.