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Election
Trying to remember who won what and why? All the information is right here. |
Daily DigestHamburg Recall
A half-million pounds of hamburger are being recalled from area supermarkets because of possible E.coli contamination. The North Adams Price Chopper confirmed ground beef with dates Sept. 16 thruogh Oct. 4 was being pulled from the shelves after being notified by its New York supplier. |
Illustrator Ahoy!
 A new Carnival Cruise children's book is filled with illustrations by local artist Jana Christy. It's being featured on the "Today Show" on Nov. 6. |
ObituariesSales FliersWhat's Playing
The popular anime character "Astro Boy" searches for acceptance on the big screen.
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BazaarsNov. 7:
VNA & Hospice, Community Room, North Adams
North Adams Elks
10-4; Nov. 8, 9-2
Crafters, Chinese auction, bake sale
For vendor information, Melanie at 413-743-5562.
Nov. 14
Berkshire Community Church, Richmond
10-4; Crafters, bake sale. Contact Evelyn Goggia at 413-445-5747
Lanesborough Elementary School annual Fall Craft Fair from 10 to 4. Free admission, huge variety of arts and crafts, raffles, food and more. Proceeds go to sixth-grade trip to Cape Cod.
Vendors can contact Deb at 413-738-5349 or debhutton@aol.com or Lori at 413-499-0065 or lorittod@yahoo.com to secure a spot.
Dec. 12th and 13th
1st Annual Holiday Bazaar and Craft Fair, North Adams Country Club - 9 – 4pm; Crafters from MA and VT are expected. Food from “That’s A Wrap” will be available from 11 – 2. Contacting Sheryl Morehouse at (413) 822 3329.
Planning a bazaar this season? Submit information to info@iberkshires.com to have it listed here. |
Sports | N.A. Youth Football
Spaghetti Supper
Thursday, Nov. 5, from 4:30 to 7 at Eagles Hall. Tickets are $6 adults, $5 seniors and children under 12; under 5, free, at the door. |
Williamstown & Lanesborough Youth Basketball
Joint signups and assessments for Grades 7 & 8 on Wednesday, Nov. 4, 6 to 8 in the Mount Greylock gym. Register in Mrs. Barrett's room or at www.williamstownyba.org. |
Related Stories |
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The Independent Investor: Take your Minimum Required Distribution NowBy Bill Schmick
iBerkshires Columnist
08:53PM / Thursday, December 25, 2008
I've fielded a number of calls lately from clients over age 70 1/2 who are required to take a minimum required distribution (MRD) from their tax-deferred accounts before the end of the year.
The rules state that everyone who owns a traditional IRA (and certain other types of defined contribution retirement accounts) must begin to liquidate these savings after they reach 70 1/2 years of age. This is to ensure that no one escapes taxation and that the money one accumulates through retirement savings is actually distributed during retirement. The yearly sum is calculated on a formula table that liquidates the entire account over the remaining estimated lifetime of the taxpayer.
There has been a degree of confusion lately over whether that distribution has been waived for this year. That is because some members of Congress have joined forces with AARP in lobbying for a moratorium on taking an MRD this year. I understand their motivation.
Most savers' IRAs are invested in stocks and mutual funds as a matter of course and since global stock markets only peaked in October 2007, most IRAs were still sporting hefty gains by the end of the year. Why is that important? Because the MRD payout percentage is based on the worth of one's IRA on Dec. 31 of each preceding year, in this case, 2007.
Since then, as most readers know, those same portfolios have taken a huge hit. In 2008, the markets and most IRA portfolios are down between 30 percent and 50 percent. As a result, the percentage of each portfolio required to be liquidated today is far larger than if we were to use the current value instead. In addition, once the IRA holder who must take a distribution cashes out of his stock or fund at a loss, he eliminates any chance to participate in a market rebound we may potentially experience in 2009.
Unfortunately, although there has been a lot of talk, no action has been taken to alleviate this problem for this year. Instead, the House and Senate have passed the Worker, Retiree and Employer Recovery Act of 2008. It addresses a whole bunch of issues including a provision that would suspend the MRD for 2009 but not 2008. It is another case of closing the barn door after the horse has escaped. Still, I guess something is better than nothing.
"I simply won't take a distribution," said an angry client on hearing the news, "I'm 75, what are they gonna do, lock me up?"
Well, no, I said, the IRS doesn't need to do that. Instead, the government levies a 50 percent penalty tax against any shortfall in your required distribution. Talk about adding insult to injury! I suggest anyone who has been delaying taking their MRD do so before the end of they year.
One final note to all my readers: over this last year of tumult and pain, I feel all of you have become part of my family through your comments and inquiries. As you know, both Christmas and Hanukkah are celebrated this week. I can't think of anything that fulfills me more than being with family at this time of year.
So I wish a very merry holiday season to you and yours. As for me, my daughter will be visiting and sharing both holidays with me and my wife. Life can't get much better than that!
Bill Schmick is a licensed investment adviser representative and portfolio strategist as well as a registered financial planner with Berkshire-based Dion Money Management, which manages more than $500 million for middle-class Americans from coast to coast. Direct your inquires to Bill at 1-877-850-7942, Ext. 146, (toll-free) or e-mail him at wschmick@dionmm.com. You can also visit www.afewdollarsmore.com for more of Bill's insight. |
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