I have an $13,000 IRA CD that is maturing in a few days. I'd like to take out $5000 for 2008 and $5000 for 2009, leaving $3000 as an IRA. What would be the best way to document this for the IRS. My taxable income for 2008 is almost nothing and should be the same for 2009. I'm way past 59 1/2 years old so I don't have any early withdrawal penalty to deal with.
Nancy
Actually if OP turned age 70 1/2 in 2008, it is possible to take the 2008 distribution by April 1 2009 and still be OK.
Art:
A distribution taken in 2009 is taxable income in 2009. She wanted to take the income into 2008.
For those playing the home version of this game, Art correctly stated that a Required Minimum Distribution for the year in which you turn
70-1/2 may be taken by April 1 of the next year, further distribution are required to be taken in the same year, based on prior year's 12/31 value. As Alan clarified, that wasn't really the question, it was about taking a taxable distribution in 2008, which cannot be done as it's now 2009. Thanks for joining, drive home safely....
Yes, but it would still be 2009 taxable income. Since the OP is past 59 1/2 and the early withdrawal penalty does not apply, the OP can do pretty much whatever she wants. It is too late for a 2008 taxable event which is what the OP wanted to do.
I'm the original poster and want to thank you for your responses. I received faulty information from the IRA dept. of my bank regarding being able to take a distribution by April 15, 2009 but declaring it as income in
2008.Nancy
And a valuable lesson was learned, one that we repeat to our clients quite often. And that is don't get tax advice or believe tax advice from bank officials, hairdressers/barbers, or used car salesmen. Always check with you competent local tax pro.
ChEAr$, Harlan Lunsford, EA n LA
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