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  • Writer's pictureRandall Fisher

Some tips for dealing with retirement funds

Here are some year-end tips for dealing with retirement funds and retirement fund issues. You want to think these issues through in conjunction with a financial advisor, a tax accountant and an attorney. We offer them in the hopes that you can finish 2009 with a bang that carries over into 2010. They are as follows:

1. Anyone who owns a business which has a calendar tax year has until December 31, 2009 to adopt a qualified plan in order to deduct retirement contributions for 2009. If they miss this deadline, a SEP plan can be established and funded by the due date for filing the plan sponsor’s 2009 tax return (with extensions) – which, if that person is a sole proprietor, could be as late as October 15, 2010.

2. If someone is age 70 1/2 or older and has a Traditional, SEP or SIMPLE IRA, they don’t have to take Required Minimum Distributions (RMDs) for 2009 including the initial RMD which is due April 1, 2010.  They should consider how skipping a distribution this year may impact their 2010 distribution.

3. Everyone should explore the benefits of a Roth IRA. Tax law changes in 2010 will enable everyone to convert to a Roth IRA, which not only provides tax-deferred growth, but also tax-free income in retirement. Your Financial Advisor or Tax Advisor can provide appropriate analysis and discuss the rule changes.

4. Everyone should fully fund their IRA and/or company retirement accounts as soon as possible. Please consult your tax advisor to determine the deadline for contributing to a company retirement plan. Remember that everyone has until April 15, 2010 to fund their IRA for 2009.

Should you have any questions regarding these tips, or need a referral to a qualified financial planner or accountant, please call our office. You may reach us by checking out our website at

Randy Fisher

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