| BUSINESSWEEK ONLINE : JULY 19, 1999 ISSUE | ||||||||
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| COVER STORY
Retirement Account Mistakes -- Not naming a beneficiary or method to calculate your life expectancy. If you don't choose, your plan will do it for you. -- Using a single instead of the joint life expectancy of you and your beneficiary. A combined expectancy allows you to spread withdrawals over more years, minimizes taxes, and gives your assets more time to grow tax-deferred. -- Not taking required minimum distributions by Apr. 1 after the year in which you turn 70 1/2. The IRS can levy a 50% fine on the difference between the amount you withdrew and the amount you were supposed to take. -- Assuming that because you took more than the minimum one year, you can take less the next. Again, the IRS can slap you with a 50% fine. -- Aiming for the lowest required minimum distribution. This can have negative consequences if you outlive your beneficiary. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ |
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 RELATED ITEMS The Many Ways of Unscrambling a Nest Egg TABLE: Retirement Account Mistakes An Early Dip into Your IRA TABLE: Downsides to Withdrawing Too Soon INTERACT E-Mail to Business Week Online | |||
