FAB&T - Trust Services Department

FAB&T representatives have acted as trustees since 1972. We are committed to creating a personalized program to properly manage and administer your trust. Currently, we oversee almost $150 million in assets for our clients.

Current Financial Planning Information

As you may know, if you have reached age 70 ˝, you are required to take a Required Minimum Distribution (RMD) from your Individual Retirement Account (IRA) each year. The amount you are required to take in your RMD is determined by the market value of your IRA on December 31st each year. Most people’s IRAs are worth noticeably less now than they were on 31 Dec 07, but as the regs currently stand, are required to take that dollar amount before the end of this year in spite of shares being worth less now.

This link will take you to an article that came out last week. It may (or may not) allow IRA owners who are subject to the RMD to not take it this year. Please keep watching what the Treasury Department and IRS come up with. It will have to be very soon!

http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20081030/REG/810309985/1094/INDaily01

Also please remember that the Economic Stabilization Act passed by Congress last month had a provision in it which extends the ability to take the RMD and donate up to $100,000 to a qualified charity for 2008 and 2009. This makes that RMD not have to be treated as ordinary income for tax purposes. (Nor can the gift be counted on your income tax return as a charitable donation for tax purposes.) It is just a wash.

Please stay in touch with your tax professional during the next few weeks before doing anything with your RMD. We here in the Trust Department will be most happy to share with you any and everything we know about this as it develops!

Kenneth "Pat" Teague
Senior Vice-President
Manager - Trust Department
First Arkansas Bank & Trust
P. O. Box 827
Jacksonville, Arkansas 72076
(501) 985-4039
(800) 982-4511
(501) 985-4009 (fax)
pteague@firstarkansasbank.com