Important Retirement Tax Deadlines for 2011

Dec. 31, 2010 – You might want to note this reminder before the rush of the holiday season.
• Contributions to 401(k) and 403(b) qualified retirement plans must be
deposited by this date to qualify for a 2010 tax break.
• In addition, retirees over age 70 ½ must take their required minimum
distribution from pre-tax IRAs and 401(k)s before the end of the year. Failing
to take the correct amount could result in a 50 percent tax penalty plus the
payment of regular income tax on the amount.
• One more deadline specifically for 2010 – if you plan to convert a pre-tax
IRA or traditional 401(k) to a Roth 401(k) in the current tax year, you must
initiate that conversion by Dec. 31. For 2010 only, you can choose whether
to pay the income tax on the transfer all in 2010 or split the tax bill and pay
half in 2011 and the other half in 2012. The split tax payment option is only
available for 2010 transfers.

April 1, 2011 – Those who turn 70 ½ in 2010 can delay their first required minimum distribution until April 1, 2011. Delaying the distribution, however, means two required distributions in 2011 – the 2010 withdrawal before April 1 and the 2011 withdrawal by Dec. 31.

April 15, 2011 – Your tax return is due, of course, unless you file for an extension. In addition, this is the last day to make IRA contributions for the 2010 tax year. If you make a contribution between Jan. 1 and April 15, 2011, make sure you note on your check which tax year it should be credited toward – otherwise, the financial institution will assume the current year (2011).

About Jordan Dechtman Wealth Management. Jordan Dechtman Wealth Management is an independent Colorado financial services firm, serving clients since 1984. Jordan Dechtman Wealth Management helps you plan, predict, protect, your future one day at a time.

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