IRA’s Individual Retirement Accounts
BENEFICIARY DESIGNATIONS
Beneficiary designations are becoming one of the “hot” topics in estate planning and litigation because of the amount of wealth being transferred. It is very important for you to know and understand whom you have named as your primary and contingent beneficiary of...
State Statute Throws Beneficiary a Lifeline!
Private Letter Ruling (“PLR”) 201706004 addresses a beneficiary designation issue. Taxpayer died owning an individual retirement account (“IRA”). The beneficiary designation indicated that taxpayer’s trust was the beneficiary. The only problem? There was NO trust...
Should Your Trust Be a Beneficiary of an IRA?
Once a person dies, the Internal Revenue Service requires that the designated beneficiary (“DB”) of an Individual Retirement Account (“IRA”) take minimum required distributions (“MRD”) from the IRA each year. You can take more than the MRD but you MUST take at least...
New rules for inherited IRAs may be coming….
Many of you may inherit traditional IRAs from loved ones. While inheritances are usually good news there is bad news also… income taxes!!! If you decide to withdraw the money in one lump sum, then you will be taxed on ALL the income in one year. Luckily the IRS has...
Do You Want a Charity to be a Beneficiary of Your IRA? Why or Why Not?
Many clients have charitable intent and may include provisions for charities in their Last Will and Testament and/or revocable trust (the “Trust”). But what if you have a substantial IRA and you have named your spouse and your children as beneficiaries of the IRA and...
Surviving Spouse? Don’t Make an IRA Rollover Mistake!
Professionals often advise individuals to name their spouse as a beneficiary of an IRA. Instead of immediately reporting the distributions from the deceased spouse’s IRA as taxable income, the surviving spouse can rollover the amount into their own IRA. They can then...
IMPORTANT CHANGES TO COME FOR IRA BENEFICIARIES… SECURE ACT SIGNED DECEMBER 20, 2019
The “Setting Every Community Up For Retirement Enhancement” (“SECURE ACT”) was signed by President Trump on December 20, 2019. The SECURE ACT was discussed in a previous blog so the same information will not be repeated here as the SECURE ACT was passed substantially...
You May be Surprised When You Receive Your IRA 1099-R!
Generally each individual who receives individual retirement account (“IRA”) distributions will receive a Form 1099-R which indicates the amount of distribution, indicating by codes what amount is taxable and non-taxable and other information. The Internal Revenue...
Is your IRA operating a business? If so watch out!
The biggest source of your wealth may be your individual retirement account (“IRA”). It may be tempting to invest that IRA in your friend’s latest great business idea, owning and leasing property or “get rich quick” ideas. A promoter may suggest creating and...
Do Not Forget Your Minimum Required Distribution!
Many of you may be receiving a minimum required distribution (MRD) from a retirement plan or you may have inherited an IRA from which you must take a MRD. Do not forget to take the MRD prior to year end. Most people are very aware of the MRD requirements from their...