701/2 rule

[Kruser]

Besides 401's and IRA'S are there any other kinds of investments that have to withdrawn from?. Point in question is stock certificates before 401's and ira's?.

 

[Snipes5]

Could you rephrase the question using more words? I don't understand what you mean. I also can't find the other threads but I'm almost certain you've asked related questions before.

Snipes

 

[Kruser]

At 701/2 your gains from any stock or Mutual fund,401's or ira's you must start to withdraw your funds by law. there is a uniform distribution period table, a minium amount has to be withdrawn from ira's,seps and simples. it was my understanding that from this table at 701/2 this would be 27.4 divided into your total gain of all your mutual funds,ira's, sep's and simples.
I don't know what sep's or simples are?. I worked for a large company say from 1960 to 1980 by payroll deduction , i bought stock in which i recieved a paper stock certificates. say 1981 and on the company changed over to a 401 plan. I know i have to start taking my money out of the 401 and the mutual fund but what about these stock certificates that i got before there was any 401's or ira's?. i do recieve dividens from all three at this time. Thank you for your reply.

 

[Snipes5]

First of all, you are talking about three different things:

1)Mutual Funds, which are a VEHICLE for the other two items.
2)IRA (I presume you mean Traditional IRA here, since you talk about minimum required distributions, (MRDs), and there are no MRDs from a ROTH IRA.
3)"401s". To the rest of us, those are 401K plans. They do have MRDs.

"Mutual Funds" don't have MRDs, unless you have them within an IRA or a 401K plan. For example, I happen to have money in several different mutual funds, some of which are in an IRA, and some of which are not.

If you don't know what a SEP or SIMPLE is, you probably don't have one. They are types of IRAs, similar in function to a 401K plan; SEP is for self-employed people, and SIMPLE is also usually used by self-employed or small businesses.

If you have stocks, you have stocks, and you can do whatever you like with them. Cash them in, put them in a safety deposit box (always a good idea), give them away, etc. If they are in your possession, they aren't in either a 401K or an IRA. You can either cash them in, burn them, or leave them for your heirs, and you can do any of these things whenever you like.

I think you would benefit from a sit down with a tax professional who can explain these things to you, face to face. Advice is free. Check your local H&R Block Office. They will probably be open on January 3, and very, very bored, with lots of free time for answering your questions.

Snipes

 

[Kruser]

Snipes5: thank you for your time and patience, your answers really cleared up things for me. i wonder why my tax advisor said don't worry about it?. maybe get another tax advisor?. i am going to see a financial advisor in Jan. thanks for your help.