Estate planning with retirement accounts requires understanding how these assets are handled after your passing. Retirement accounts, including 401(k)s and IRAs, are significant parts of many estates and need careful consideration to ensure they align with your overall estate planning goals. Understanding Beneficiary Designations Retirement accounts are unique because they typically pass to named beneficiaries outside of your will or trust. This means the person or entity (.e.g., a … [Read more...] about Estate Planning with Retirement Accounts
Retirement Planning
The SECURE Act – the Gift That Keeps On Giving
The SECURE Act of 2019 altered the landscape for IRAs significantly when signed into law. Just when advisors gained a level of comfort with the SECURE Act, the United States Treasury Department issued Regulations in early 2022 requiring RMDs under the 10-year Rule in years 1-9. After realizing that many individuals were unaware of that requirement, the Internal Revenue Service responded by issuing Notice 2022-53 suspending the requirement to take RMDS in 2021 and 2022. SECURE 2.0 came at the end … [Read more...] about The SECURE Act – the Gift That Keeps On Giving
Protecting Your Assets in Retirement: Estate Planning Tips
Retirement is a time to enjoy the fruits of your labor and spend time with loved ones. However, it's also important to make sure that your assets are protected and that your wishes are followed after your death. An estate plan can help you protect your assets and ensure that your beneficiaries receive their share of your estate. Here are some tips on how to protect your assets in retirement with an estate plan: In conclusion, an estate plan can help protect your assets in retirement … [Read more...] about Protecting Your Assets in Retirement: Estate Planning Tips
What You Need to Know About SECURE Act 2.0
IRAs have become ubiquitous components of estate plans. The SECURE Act of 2019 altered the landscape for IRAs significantly. Just when advisors began to get comfortable with the new 10-year rule, the United States Treasury Department promulgated proposed Treasury Regulations early in 2022 adding additional complexity to that rule by requiring annual distributions for a non-EDB of a participant who died after their Required Beginning Date. Once again, the SECURE Act includes additional provisions … [Read more...] about What You Need to Know About SECURE Act 2.0
Social Security and Retirement Planning
Depending on the extent of your resources it may well take some careful planning to be able to enjoy your retirement years to the utmost. Simply maintaining the lifestyle that you have in mind is probably going to be your first consideration, but the reality is that there are many unknowns that have a significant impact on your finances. People are living longer and longer and statistics indicate that approximately 4 out of every 10 senior citizens will spend some time in a long-term care … [Read more...] about Social Security and Retirement Planning
Small Business Owners: Don’t Forget to Plan
If you own a small business, you have plenty to think about on a daily basis. However, have you considered what would happen to the business upon your death. If the business has been successful, you also likely have a considerable financial interest in the business. Without careful planning, the value of your financial interest in the business can be subject to either gift or estate taxes upon your death. Although there are numerous options that may be used to help reduce estate or gift taxes, … [Read more...] about Small Business Owners: Don’t Forget to Plan
Social Security: Is It Enough?
One of the big stories in the elder law community these days involves the fact that the baby boomer generation is reaching retirement age. No less than 10,000 people are applying for Social Security for the first time every day, and this volume of applicants is expected to continue for the next 20 years. The Social Security Administration states that 64% of people who receive a Social Security check rely on it as their primary source of income. To drill down deeper, 33% of recipients say … [Read more...] about Social Security: Is It Enough?
Just When You Thought You Understood the 10-Year Rule, Think Again
IRAs have become ubiquitous components of estate plans. The SECURE Act of 2019 altered the landscape for IRAs significantly by eliminating the stretch benefit for most designated beneficiaries and forcing all designated beneficiaries other than Eligible Designated Beneficiaries to use the 10-year rule for distributions. The 10-year rule was thought to operate much like the 5-year rule that existed before the passage of the SECURE Act. Recently issued proposed Treasury Regulations dispute that … [Read more...] about Just When You Thought You Understood the 10-Year Rule, Think Again
IRA Distributions and Children: A Probem and a Solution
Retirement accounts play an important role in estate planning, one of the main benefits being that retirement accounts avoid probate, as they pass to a named beneficiary using a beneficiary form that you complete when you open your account. IRAs, Individual Retirement Accounts, are not only powerful estate planning tools, but they, of course, are great vehicles for saving for retirement with tax benefits. In fact, the income tax on an IRA is payable only when funds are withdrawn from the … [Read more...] about IRA Distributions and Children: A Probem and a Solution
Application of the Updated Life Expectancy Tables
Since the creation of Individual Retirement Accounts in 1971, they have become an increasingly important part of a well-balanced Estate Plan. Taxpayers contribute to the IRA. Upon attaining a certain age, the taxpayer begins taking distributions based upon tables promulgated by the Internal Revenue Service. The Internal Revenue Service recently updated those tables which will significantly impact certain taxpayers. My friend and colleague Tereina Stidd, an estate planning expert, has looked into … [Read more...] about Application of the Updated Life Expectancy Tables
