Although it sounds strange, you may encounter situations in which you have to accept money even if you’d rather not. Such is the case with required minimum distributions (RMDs) from your traditional IRA, 401(k) or other employer-sponsored retirement plan. But thanks to recent legislation, you can ignore the “required” part of RMDs — at least for a year.? ?Specifically, lawmakers recently placed a one-year moratorium on taking (RMDs) for 2009. If you’re not familiar with the rules governing RMDs, here’s a little background: Generally, the IRS requires you to begin taking RMDs in the year in which you turn 70-1/2, or no later than April 1 of the following year.

At this time of year, you may be thinking about finding the “perfect” gifts for various family members. You can find any number of thoughtful presents, but if you’d like to give something that can have an impact long after the holiday season is over, consider making a financial gift.
You could, of course, just write a check. But you may be able to do more for your intended recipients by finding a more creative gift. Here are a few possibilities:

Once you’ve started contributing to your 401(k) plan and funded it with investments that are appropriate for your needs, you might think you’re in good shape and that your 401(k) is now on “autopilot.”  But that type of thinking can actually be counterproductive, because to get the maximum benefits from your 401(k), you’ll need to revise it over time to reflect changes in your life and in the investments that make up your plan. That’s why it’s a smart move to review your 401(k) holdings annually — and when this year is winding down is as good a time as any to see what you’ve got, where you’ve been and where you might be headed.

Do you want to retire early? Many people do — but they’re not always financially prepared. If you’re thinking of taking early retirement, start preparing for it — as early as you can.
 
To afford early retirement, you’ve got to address at least two key financial concerns. First, by definition, you’ll have more years of retirement to pay for than people who retire later. And second, by retiring early, you’re sacrificing the opportunity to contribute to your 401(k) or other employer-sponsored retirement plan; also, you need earned income to contribute to an IRA.