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Important
IRA deadlines coming up The
rules governing IRAs are complex, and making mistakes can be costly.
Here are some important deadlines and reminders —
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| You
have until April 15, 2005, to establish and contribute to an individual
retirement account (IRA) for 2004. | | | | |
| If
your 2004 IRA isn't yet fully funded ($3,000 if you're under age
50; $3,500 if you're 50 or older), designate your 2005 contributions
as being for 2004 until you reach that limit or the April 15 deadline
passes. You can then deduct these amounts on your 2004 tax return
for an earlier tax benefit. | | | | |
| If
you turned 70½ in 2004, you must start taking required minimum
distributions (RMDs) from your IRAs (except for Roth IRAs). If you
haven't yet taken your 2004 RMD, you must take it by April 1, 2005,
or face a 50% penalty. |
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| Be
aware that the financial institutions that hold your retirement
accounts could make errors in following your instructions and create
unexpected tax consequences and penalties. Give the financial institution
adequate time to meet deadlines and follow your directions. And
follow up to be sure that no mistakes are made. |
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