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Raymond James A column by James Kruzan


This year's tax, retirement deadlines



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February 29, 2012 - Important Tax & Retirement Planning Deadlines for 2012:

Sept. 30 – Beneficiary Designation Date. It may be possible for beneficiaries of IRAs and Qualified Retirement Plans to take Required Minimum Distributions based on their own single life expectancy only if the deceased IRA or QRP account owner had a Designated Beneficiary(s).

Oct. 1 – 2012 Catch-up Contribution Universal Availability Deadline. Individuals who attain age 50 or over on or before December 31, 2012 may make catch-up contributions to applicable employer retirement plans.

Oct. 1 – Deadline to Establish SIMPLE IRA Plan for 2012 Plan Year. An employer may set up a Simple IRA plan any date between January 1, 2012 and October 1, 2012.

Oct. 1 – Deadline to Set Up a New Safe-Harbor 401(k) Plan for 2012 Plan Year. The first plan year must be at least a three-month plan year.

Oct. 15 – Last Day to Recharactorize a 2011 Conversion to a Roth. These taxpayers are (1) those whose Roth IRA has experienced a drop in market value of the assets following a 2011 conversion from a traditional to a Roth IRA, and (2) those who made a Roth IRA contribution and their AGI exceeded $125,000 for a single filer, or $183,000 for a married filer.

Nov. 2 – Deadline for Providing SIMPLE IRA Required Notices (Including Notification of Plan Termination). Employers sponsoring a SIMPLE IRA plan must provide each eligible employee with two required notices 60 days prior to the start of the 2012 plan year. First, provide either (1) a Summary Plan Description (SPD) for the plan, or (2) a copy of the IRS Form 5304-Simple or 5305-Simple. Second, employers are also required to notify each eligible employee that he/she may make or change salary reduction elections during this 60-day period.

Dec. 1 – Deadline for Notification of Switch from Regular 401(k) or Profit Sharing Plan to a Safe Harbor 401(k) Plan. Employers that have amended their existing 401(k) or PSPs to include a safe-harbor 401(k) provision effective 2012 must provide written notice to each eligible employee between 30 and 90 days prior to the start of the 2012 plan year.

For more information on these and other year-end tax and financial planning opportunities, please consult with your Financial Advisor or CPA. This material was prepared by Raymond James for use by James B. Kruzan, CFP®, CRPC® of Raymond James Financial Services, Inc. Member FINRA/SIPC.

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