Pender-Topsail Post & Voice, Thursday, November 5, 2015, Page 7A
Obituaries
IRA rules for retirees Dear Savvy Senior, Can you give me the details on required IRA and 401(k) distributions? I turned 70 this year, and want to be clear on what I’m required to do, and when I’ll have to do it. Planning Ahead Dear Planning, The old saying “you can’t take it with you” is definitely true when it comes to Uncle Sam and your tax-deferred retirement accounts. Here’s what you should know about required retirement account distributions along with some tips to help you avoid extra taxes and penalties. •RMD Rules: Beginning at age 70½, the IRS requires all seniors that own tax-deferred retirement accounts – like traditional IRAs, SEP IRAs, SIMPLE IRAs, SARSEPs, 401(k)s, 403(b)s and 457s – must start taking annual required minimum distributions (RMDs), and pay taxes on those withdrawals. The reason: The IRS doesn’t want you hoarding your money in these accounts forever. They want their cut. Distributions are taxed as income at your ordinary income tax rate. There are, however, two exceptions. Owners of Roth IRAs are not required to take a distribution, unless the Roth is inherited. And if you continue to work beyond age 70½, and you don’t own 5 percent or more of the company you work for, you can delay withdrawals from your employer’s retirement plan until after you retire. But if you have other non-work-related accounts, such as a traditional IRA or a 401(k) from a previous employer, you are still required to take RMDs from them after age 70½, even if you’re still working. •RMD Deadlines: Generally, you must take your distribution every year by Dec. 31. First timers, however, can choose to delay taking their distribution until April 1 of
the year following the year you turn 70½. So, for example, if your 70th birthday was in March 2015, you would turn 70½ in September and your required beginning date would be April 1, 2016. But if your 70th birthday occurred later in the year, say in August, you wouldn’t turn 70½ until 2016. In that case, you would be required to take your first distribution by April 1, 2017. But be careful about delaying, because if you delay your first distribution, it may push you into a higher tax bracket because you must take your next distribution by December 31 of the same year. Also note that you can always withdraw more than the required amount, but if you don’t take out the minimum, you’ll be hit with a 50 percent penalty on the amount that you failed to withdraw, along with the income tax you owe on it. •Distribution Amounts: Your RMD is calculated by dividing your tax-deferred retirement account balance as of Dec. 31 of the previous year, by an IRS estimate of your life expectancy. A special rule applies if your spouse is the beneficiary and is more than 10 years younger than you. IRA withdrawals must be calculated for each IRA you own, but you can withdraw the money from any IRA or combination of IRAs. 403(b) accounts also allow you to total the RMDs and take them from any account or combination of accounts. With 401(k) plans, however, you must calculate the RMD for each plan and withdraw Men’s gifts the Wallets appropriate amount from each account. Watches
Emily Cashwell Johnson BURGAW -- Emily Cashwell Johnson, of Burgaw, passed from her earthly life on Monday, Oct. 26, 2015. She was born in Cumberland County, the daughter of the late Arthur Dixon and Elizabeth MacDonald Cashwell. Emily was also preceded in death by her sister, Frances Kennedy; brothers Malcolm, Richard and Tom Cashwell; and sister-in-law, Ann Hoover Dees. Emily is survived by her husband of 59 years, Joab F. Johnson, Jr.; son, Joab “Ab” F. Johnson III (Stephanie); daughter, Elizabeth “Beth” Johnson Collawn (Jimmy); grandchildren, Emma Ruth Johnson, Joe Johnson, Emily Collawn, Maggie Collawn and Anna Collawn; sisters
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vibrant Christian example to all who crossed her path. Funeral service was at 2 p.m. on Thursday, Oct. 29, 2015 at Burgaw Presbyterian Church with the Rev. Will Davis officiating. Burial followed in Johnson Family Cemetery. Casketbearers were Buron Lanier, Riv Ezzell, Tyler Dees, Richard Dees, Ward Johanson, and Marty Varner. The family received friends from 6-8 p.m. Wednesday Oct. 28 at Quinn-McGowen Funeral Home in Burgaw. With love, a special thankyou to caregivers, Lou Lanier and Linda Cole. Also appreciated are all the prayers and acts of kindness from Emily’s many friends during her illness and passing. May the Lord bless you all. Shared memories and condolences may be sent to the family at www.quinnmcgowen.com. The family was served by Quinn-McGowen Funeral Home of Burgaw. Peter Morgan Pelly BURGAW -- Peter Morgan Pelly, 88, of Burgaw made his celestial rendezvous Nov. 1. 2015. Born in the Bronx, New York to the late Peter Pelly and Sarah (Donahue) Pelly, Peter was raised in Staten Island, New York. He
is survived by his wife Judy Fitzgerald Pelly. Peter is also survived by a sister Katherine Pelly of Las Cruces, N.M. and was proceeded in death by a brother Frank Pelly of Galloway, N.J. and former wife Celine Schretlen of Asheville, with whom they raised nine children; Mary DiSalvo of Asheville, Peter (died at birth), Morgan Pelly and wife Lisa of Fletcher, Sharon Argenbright of Sante Fe, N.M., Chris Pelly and wife Juanita Igo of Asheville, Michael Pelly of Olympia, Wash., Gregory Pelly of Thompson, Pa., Celine Pele of McKinleyville, Calif. and Joe Pelly and wife Sara of Keller, Texas. In addition he leaves behind 19 grandchildren and six greatgrandchildren. Pete is also survived by wife Judy’s three children, Margaret McChesney, Joe McChesney and wife Casey, and Kate McChesney, and three grandchildren The family received friends Nov. 4 at Harrell’s Funeral Home from 5-6:30 p.m. A celebration of Peter’s life will be scheduled soon. Shared memories and condolences can be sent to the family at www.harrellsfh. com. The family was served by Harrell’s Funeral Home
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Margaret Wood (Worth), Sara Donaldson, Mary Frasche` (Denny), Prudy Bradley (Larry) and Janet Holt (Henry); brothers Don Cashwell (Hilda) and Angus Cashwell (Belinda); sister-in-law, Susie Johnson; and numerous nieces, nephews and friends. Emily g raduated from Hope Mills High School, attended Montreat College and graduated with a degree in Home Economics from Flora MacDonald College. Her career began in Pender County as a Home Demonstration Agent overseeing 22 clubs that she dearly loved and enjoyed. In later years, she was a speech therapist for the Pender County School System, an audiologist for Calloway, Jones and Fulk, MDs, in Wilmington, and served as the Chief Magistrate in Pender County for 12 years. A lifelong Presbyterian, Emily served as a youth Sunday school teacher, member of the choir and Bible moderator in Presbyterian Women, receiving the Presbyterian Women’s Honorary Life Membership. She loved the North Carolina mountains, studying the Bible, entertaining family and friends, sharing the love of Christ and praying for all and everything. She was a
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