It’s Almost Time to Throw Away that 2013 Calendar

Carmel Valley San Diego Community | Karen Mendez | January 2014 CalendarAs you put birthdays, anniversaries and other important dates on your new calendar, you might want to include reminders about certain retirement deadlines throughout the year.

Dec. 31, 2013 – Before the final rush of the holiday season, note that contributions to 401(k) and 403(b) qualified retirement plans must be deposited by this date to qualify for a 2013 tax break.  In addition, retirees over age 70 1Ž2 must take their required minimum distribution from pre-tax IRAs and 401(k)s before the end of the year.  Failing to take the correct amount could result in a 50 percent tax penalty plus the payment of regular income tax on the amount.  One more deadline specifically for 2013 – if you plan to convert a pre-tax IRA or traditional 401(k) to a Roth 401(k) in the current tax year, you must initiate that conversion by Dec. 31.

April 1, 2014 – Those who turned 70 1Ž2 in 2013 can delay their first required minimum distribution until April 1, 2014.  Delaying the distribution, however, means two required distributions in 2014 – the 2013 withdrawal before April 1 and the 2014 withdrawal by Dec. 31.

April 15, 2014 – Your tax return is due, of course, unless you file for an extension.  In addition, this is the last day to make IRA contributions for the 2013 tax year.  If you make a contribution between Jan. 1 and April 15, 2014, make sure you note on your check which tax year it should be credited toward – otherwise, the financial institution will assume the current year (2014).

Are you turning 65 in 2014? If so, you can sign up for Medicare as early as three months before your 65th birthday if you want coverage to begin the month you turn 65.  If you delay enrollment, your Medicare Part B and D premiums could permanently increase or you could be denied supplemental coverage all together, so mark your calendar for three months prior to your 65th birthday.

Our office will help you stay on top of these deadlines, and we can work with your accountant to execute any investment actions related to your tax strategy.  Call our office if you have questions or to schedule a joint appointment with your tax advisor.


Carmel Valley San Diego Community | Karen Mendez

Karen helps attorneys; mediators, individuals and couples, navigate through the financial morass of divorce and widowhood. Her expertise lies in understanding the special tax and financial issues that can plague divorce and she helps clients get their financial fair share and equitable settlements. She provides financial analysis, projections and solutions so clients can avoid long-term regret over decisions made early on in divorce and widowhood.  Karen offers a range of financial, investment and insurance services that address clients’ complete financial picture and long-term needs before, during and after marriage.  She is currently writing a book entitled, “To Have and To Hold Onto Your Financial Fair Share: Financial Decision Making When Marriage Ends in Divorce or Death.”

“Bringing Rationality to Irrational Situations”


Carmel Valley San Diego Community | RIDE Cyclery Encinitas

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