William Penn Life, 2018 (53. évfolyam, 1-12. szám)
2018-02-01 / 2. szám
Illustration: © Pictac/Dreamstiine.Coi Agents' Corner Minnie Mmot-Carr Carl «s born »"oiS Wsur.nce' S a ^PA sales rep ^Q\ \ • . Carr 's Since N^f‘rri,ed to]«" “ “ ^bile gro^ng looking to g her business. She values the idea of family because she is the youngest of 17 children. Helping others and working hard are values she grew up with. In September 2011, Minnie and her business partner, Tom Lewis, founded Oink Group, Inc. with a passion to educate inner-city families on financial literacy and how it can help to avoid generational debt. She has partnered with many community organizations, starting with her home church—Greater Bethlehem Healing Temple in Chicago-and a plethora of other churches and business organizations, including the Austin African American Business Network Association, Austin POWER (People Organizing Wealth and Economic Resources), and the Englewood Education and Youth Task Force. WPA is one of Minnie’s favorite insurers because they are a fraternal society, providing its member’s not only life coverage but a host of additional benefits. Education and solutions are what Minnie stands for in the community, and WPA is a great asset to her business and her clients. □ Reasons to take your RMD later in the year Now that we have explored some options for taking your RMD early in the year, let's discuss good reasons to wait until later in the year to take the distribution. • Waiting will maximize tax deferral. When it comes to IRAs, tax deferral is the name of the game. The longer your money stays in an IRA, the longer earnings are shielded from taxation. By waiting until later in the year to take your distribution, you give that money almost another full year of additional tax deferral, thereby increasing the overall total in your account. All interest that is earned on the RMD amount between now and the time of distribution will accrue within your IRA and will not be subject to taxation this year. For example, let's return to Harry and his $10,000 RMD. Let's suppose that Harry was in a WPA annuity currently earning 3.5% and decided to defer his RMD until the end of the year. Harry would earn close to $350 in deferred earnings on his RMD amount that will stay in his account and help to increase the overall value of his IRA. • Many members use the RMD as an extra “Christmas" bonus. While it's true that many of our members use their RMD to purchase Christmas gifts or distribute cash among their loved ones, this is a personal decision that only you can make. As you can see, there are pros and cons to both sides of the RMD timing issue. One or the other will fit with your particular situation and help make your decision easier. Here's one more thought on the RMD process here at William Penn Association. While it is our obligation to notify you of your required RMD amount in January, it is your responsibility to be sure to take the required minimum amount by the end of the year. Many of our members may be on "interest only" distributions, which may or may not satisfy your RMD requirement in any given year. That's why it's important to review your RMD each year to be sure you are not subjecting yourself to any unnecessary penalties. Also, if you are currently under one of our "automatic" RMD options-by which we send you the required minimum distribution on an annual, quarterly or monthly basis—there is no need to contact us to verify whether your distributions will be sufficient or not. We have that information locked into our payout system and will automatically adjust your RMDs accordingly. You only need to notify us (in writing) should you wish to change anything on your RMD, such as the amount (above the minimum) or the tax withholding amounts. Other than that, once your election is in place, it should be smooth sailing! Confused by all of the different IRA and RMD options available to you? Considering rolling over an amount from your retirement plan or another IRA? Why not give your WPA agent or broker a call to help you decide which options might be best for you. Don't have an agent? Give us a call at the Home Office, and we'll be happy to help or assign a local agent to your account. □ WILLIAM PENN LIFE 0 February 2018 0 5 iriuoiid i v un
