Why It’s Not Only Those Over 70½ Who Are at Risk
Retirees of any age with large IRAs must understand that their IRAs can be hit with estate and income taxes when they die. And...
The Problem of Being Too Rich
Unfortunately, although BAPCPA has created an exemption for all types of retirement plans, the exemption for those plans is not unlimited in all cases....
Separate Account for Non-spouse Beneficiaries
There are non-tax reasons to create separate trusts for beneficiaries:
Individual Life Expectancies Can Be Used.
Avoid Beneficiary Disagreements.
Maintain Separate Investment Strategies by Beneficiary.
Beneficiaries Have Option...
What About Charities as IRA Beneficiaries?
You may think that it’s a nice thing to leave some of your unused retirement funds to charity when you go. Generally, this a...
Income in Respect of a Decedent (IRD)
Understanding the tax deductibility of income in respect of a decedent (IRD) is gaining significance as the baby boomer generation reaches retirement. Many parents...
Protect the IRA Value
Life insurance
Earlier, we showed how a large IRA in a significant estate can be burdened with an 86% combined tax (federal income tax, state...
Spousal Advantages
When it comes to the spouse inheriting the IRA, the spouse gets special flexibility. (This should make you feel good that you’ll be dead...
Divorce and Distribution of IRA and Retirement Accounts
Given the rate of divorce, it’s critical to address how your retirement assets get handled. The question is “does your spouse have an interest...
The Bankruptcy Law
The Bankruptcy Abuse Protection and Consumer Protection Act of 2005 (BAPCPA) simultaneously increased, in some cases substantially, the creditor protection available to retirement accounts...
IRAs—The Missing Link in Many Seniors’ Estate Plans
According to the IRS, 43 million people have $2.7 trillion in retirement accounts. Most of this money will become IRA rollovers, and the dollars...