As a fiduciary financial advisor in Shelby, Holland Capital helps retirees plan required withdrawals from IRAs and old 401(k)s, give from an IRA and simplify accounts spread across several firms. We work with clients in Shelby by video and phone, and meet in person by appointment at the Regus center in Kings Mountain.
In your 70s, the tax rules start deciding some of your withdrawals.
About one in five Shelby residents is 65 or older. For a retiree, the mid-70s bring a new rule: required minimum distributions from IRAs and most workplace plans.
At the same point, accounts may be spread across a few firms, from old jobs and old advisers. Each one has its own statement, its own withdrawal and its own tax form.
A simpler setup can make the required withdrawals easier to manage, and easier for your family if they ever need to step in.
Required Minimum Distributions
Required withdrawals begin at 73 for people born from 1951 through 1959, and at 75 for people born in 1960 or later. Each year’s amount is set by the account’s value at the end of the prior year and an IRS life expectancy table.
Withdrawals from traditional IRAs and 401(k)s are taxed as income. North Carolina taxes them at its flat rate. Social Security is not taxed by the state.
If you own several IRAs, you can add up the required amounts and take the total from any of them. Each 401(k) generally needs its own withdrawal. Our guide to required minimum distributions walks through the calculation.
Giving from Your IRA
If you give to a church or charity, you may be able to give straight from your IRA once you reach 70½. This is called a qualified charitable distribution.
The gift counts toward your required withdrawal but is not added to your taxable income. For someone who no longer itemizes deductions, that can lower the tax on the same gift.
The money must go directly from the IRA to the charity. We coordinate the request with the custodian and show you what records to keep for tax reporting.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Fewer Accounts, One Plan
Combining old 401(k)s and IRAs into fewer accounts can mean fewer required withdrawals to track and fewer tax forms. It is not always the right move, so we look at each account’s costs and features first.
Everything is invested according to one written investment policy statement. It decides how much is held in steadier investments to cover the next few years of withdrawals, and how the rest is invested for the years after that.
Our guide on Social Security and retirement income shows how the pieces fit together.
In your 70s, investment management at Holland Capital is built around the withdrawals ahead.
How We Work with Clients in Shelby
Holland Capital Management is an independent registered investment adviser and a fiduciary. M. Chad Holland, CFA, CFP® works directly with clients and is responsible for the planning and advice.
Bring your latest statement from each account, last year’s tax return and a list of any charities you give to. If you already take required withdrawals, bring the notice from each firm.
We organize this year’s required withdrawals, review whether IRA giving fits and identify any accounts worth combining.
The first conversation is free. If there is work worth doing after that, we will define the scope and cost before you decide whether to move forward.
Holland Capital is based in Charlotte. If you are looking for a fiduciary financial advisor in Shelby, we meet by appointment at the Regus center at 502 West King Street in Kings Mountain, about 21 minutes from Shelby, and handle shorter check-ins by video or phone. Holland Capital does not maintain a branch office in Shelby.
We work with clients throughout North Carolina. You can see the other North Carolina communities we serve here.
Our what we do page explains how a planning engagement works.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Frequently Asked Questions
Why Use a Fiduciary Financial Advisor for Required Withdrawals?
Holland Capital acts as a fiduciary when providing financial planning and investment advice. That covers the amount, timing and tax of each required withdrawal, along with Social Security and any giving.
Combining accounts into an IRA we manage would increase what we are paid. We explain that before recommending it.
What Happens If I Miss a Required Withdrawal?
The IRS can charge a penalty on the amount you should have taken. The penalty is lower if you correct the mistake quickly.
We track the deadline for each account so the withdrawal is taken on time.
How Far Would I Drive from Shelby?
About 21 minutes. We meet by appointment at the Regus center on West King Street in Kings Mountain.
A phone call or video meeting works well for shorter reviews.
Photo: Indy beetle / Wikimedia Commons / CC0, cropped.
