Q. I have a 401(k) and several IRAs. Next year, I’ll have to start taking Required Minimum Distributions (RMDs). Do I have to take an RMD from each account? — Planning ahead A. Here’s a way you can make your life much easier. First, the background. The owner of a 401(k) plan, Simple IRA, SEP IRA or regular IRA must start taking mandatory withdrawals — RMDs — when they turn 70½ years old. The general rule is you must take your first RMD by April 1 of the year after the year you turn 70½, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown. Want more personal finance news? Enter your email address to be the first to know:
Q. I live full-time in New Jersey and I also own a Virginia townhouse in a retirement community. I rent out the townhouse by the year. I plan to sell the New Jersey home and move to Virginia all in the same month, but it will take me a few months to transfer my residency to Virginia, including the driver’s license, voter’s registration and the rest. When will I be considered a Virginia resident in terms of the taxes on the sale? — Moving on up A. We’re sorry to see you go. To answer your question, we’re going to assume your New Jersey home was your principal residence for at least 24 months out of the five-year period ending on the day you sold your home. Assuming that’s true, $250,000 of ca
Q. My wife and I bought a condo in Jersey City in 2007. We moved from New Jersey in 2011 and don't file in the state, but we maintained the property for rent. We are finally selling it. Is there a way to avoid the exit tax? The gains on the sale are modest at $29,000. The 2 percent charge is a little over $7,000 and obviously puts a dent in our profits. — Seller A. Congrats on the sale of the condo, but there’s no escaping the exit tax. First, the exit tax isn’t really an extra tax. It’s just an estimated tax on the home sale, and the state does it this way to make sure the seller files a tax return in New Jersey for the year in which the property was sold. You moved out of New Jersey in 201
