Bob RichardsI think that few financial advisors discuss this with their clients or even understand some of these issues. The custodian that holds your IRA (bank, securities firm, insurance company) may have rules that do not agree with your desires for distributing your IRA. And their rules rule. Figure 4: Beneficiary Designation Issues Let’s consider [...]
Bob Richards□ Will the custodian or plan administrator require that a designation of a beneficiary or beneficiaries be done on their own forms, or will they accept as valid a detailed, customized beneficiary designation created in conjunction with your retirement plan professional? A custodian or plan administrator’s own form is often too limiting. But, be [...]
Bob RichardsIn order to determine your balance as of December 31 of the previous year, you aggregate accounts of the same type: IRAs, SEP-IRAs, and SIMPLE IRAs get aggregated. Note that inherited IRAs do not get included here—they have their own category and only inherited IRAs from the same decedent can be aggregated. Additionally, if [...]
Bob RichardsSelf-directed IRAs are ubiquitous, offered by every securities firm and many banks. If you can self-direct the IRA, then what does it matter which custodian you select? Because each custodian has an “adoption agreement” that contains restrictions that people and their advisors never read. A simple restriction may be that only publicly traded securities [...]
Bob RichardsHere are the questions you or your advisor should look to see are answered in the IRA adoption agreement. What are the annual fees and fees if you desire to transfer your IRA to another custodian? Will the custodian or plan administrator require that a designation of a beneficiary or beneficiaries be done on [...]
