Archive for July, 2011
When it comes to taxes, reaching age 70 ½ is an important milestone. That’s because you have to start taking minimum annual distributions from most retirement plans when you reach age 70 ½. And if you’ve already retired from your company, at 70 ½ you must also begin making withdrawals from your company’s retirement plan. Not taking these distributions means you could get hit with a 50% penalty tax!
by Stacey L. Spencer, QKA | Manager, Employee Benefits Group
Women often reach retirement age with fewer pension benefits and retirement assets than men. All workers need to save more for retirement, but women face added challenges because they have lower earnings, experience higher job turnover, and have a longer life expectancy. Women generally begin retirement with smaller pensions than their male counterparts but usually live longer than men. Social Security is intended to be a supplemental source of income in retirement, but too many women are forced to rely on it as their sole source support in retirement. As a result of these issues, elderly women in the United States have one of the highest poverty rates of any industrialized nation.
Chief among the reasons that women save less than men is that women earn less than men; lower earnings equal lower retirement savings. The Equal Pay Act was passed in 1963 and yet almost half a century later, women make only 77 cents for every dollar earned by men. According to the National Women’s Law Center, “This persistent pay gap translates to more than $10,000 in lost wages per year for the average female worker.”
Last week the Indiana Department of Revenue began issuing more than 90,000 tax bills to individuals who filed a 2010 tax return and have not paid the tax due yet. If you’re among those folks receiving a tax bill, you owe more than $100, and you cannot pay that amount in full, you now can get online 24/7 and set up a payment plan.
Here are some things you need to know:
- Your bill has to be for $100 or more (if you owe less than $100 call 317-232-2165 to see if you qualify for a special-case payment arrangement for a duration of three months).
- You must pay 10 percent down.
- You can take up to 12 months to pay (if you owe more than $500, you can extend that to 24 months).
- Penalty and interest charges apply.
- Monthly payments have to be paid electronically.
- If your bill is for a tax year other than 2009 or 2010 and you do not have a Case ID number, call the Department at 317-232-2165 for payment plan arrangements. Once set-up, you can manage the account and make payments online.
If you want to take advantage of this option, or to learn more about it, go to www.intaxpay.in.gov If you find you need to extend the payment timetable to fit your life circumstances, this online tool is for you. Check it out today, take control of your tax obligation, and begin breathing easier.