This is the second in a two-part series on Roth IRAs. The first part reviewed the basics of Roth IRAs. (Click here for the first article in the series.) This second part looks at two advanced planning strategies. The first advanced planning strategy is to use a Roth IRA to maximize the deferral on an inherited IRA. Prior to the SECURE Act, beneficiaries could take distributions over their life expectancy. For those dying after 2019 with IRAs, the SECURE Act applies. Under the Act, most … [Read more...] about Roth IRAs Can Be a Great Planning Strategy: Advanced
IRAs
Roth IRAs Can Be a Great Planning Strategy: Basics
This is the first in a two-part series on Roth IRAs. This first part will look at the basics of Roth IRAs. The second part will look at more advanced planning strategies. An Individual Retirement Account (IRA) is a savings vehicle in which a deduction may be taken upon contribution (with limitations). The maximum contribution in 2021 is $6,000, and those age 50 and over may contribute an additional $1,000. While the assets are in the IRA, the income is not taxable. However, when distributions … [Read more...] about Roth IRAs Can Be a Great Planning Strategy: Basics
Beneficiary Designations and the SECURE Act: Prior Designations
Clients spend lots of time, money, and energy planning their estates. Estate Planning attorneys help them by counseling these clients and preparing various documents to meet the goals of the client, such as a Will or Trust. An increasing part of American wealth is governed by beneficiary designations. According to Statista, Americans had over $32 trillion in retirement assets alone. That’s trillion with a “t.” This blog series focuses on beneficiary designations. Prior blogs examined the … [Read more...] about Beneficiary Designations and the SECURE Act: Prior Designations
Beneficiary Designations and the SECURE Act: Eligible Designated Beneficiaries
Clients spend lots of time, money, and energy planning their estates. Estate Planning attorneys help them by counseling these clients and preparing various documents to meet the goals of the client, such as a Will or Trust. An increasing part of American wealth is governed by beneficiary designations. According to Statista, Americans had over $32 trillion in retirement assets alone. That’s trillion with a “t.” This blog series focuses on beneficiary designations. This blog examines “eligible … [Read more...] about Beneficiary Designations and the SECURE Act: Eligible Designated Beneficiaries
Beneficiary Designations and the SECURE Act Basics
Clients spend lots of time, money, and energy planning their estates. Estate Planning attorneys help them by counseling these clients and preparing various documents to meet the goals of the client, such as a Will or Trust. An increasing part of American wealth is governed by beneficiary designations. According to Statista, Americans had over $32 trillion in retirement assets alone. That’s trillion with a “t.” This blog series focuses on beneficiary designations. This blog looks at the … [Read more...] about Beneficiary Designations and the SECURE Act Basics
Beneficiary Designations
Clients spend lots of time, money, and energy planning their estates. Estate Planning attorneys help them by counseling these clients and preparing various documents to meet the goals of the client, such as a Will or Trust. All too often a client forgets to mention and the attorney forgets to ask about assets that pass via beneficiary designations. This could be disastrous for all concerned. An increasing part of American wealth is governed by beneficiary designations. According to Statista, … [Read more...] about Beneficiary Designations
Basics of Estate Planning: IRAs
This is another in a series of blogs on the basics of estate planning. IRAs are one the trickiest assets for estate planning attorneys to handle for many reasons. First, they often are overlooked in the estate planning process because they cannot be transferred during lifetime. This asset, like some other assets, are controlled by beneficiary designation. While the client might remember a large IRA, they often forget smaller IRAs. As a result, beneficiary designations often are left … [Read more...] about Basics of Estate Planning: IRAs
Basics of Estate Planning: IRAs, Retirement Plans, and Trusts
This is another in the series of blogs on the basics of estate planning. In the last blog in the series, we looked at how trusts can be used to help with Medicaid planning. In this blog, we’ll see how trusts may be used with retirement plans and IRAs. A retirement plan (like a 401(k)) or an IRA may name an individual, a trust, or something else as the beneficiary of the benefits. If an individual is named, that individual’s life expectancy is used. You’d use the single life table which can be … [Read more...] about Basics of Estate Planning: IRAs, Retirement Plans, and Trusts
Learning Never Stops
I just returned from the American Academy’s Spring Summit event in Louisville, Kentucky. It was great to see old friends and to make new ones! At the Summit event in Louisville, I was particularly impressed by all the learning going on. Members were learning substantive law, practice management, marketing, ethics, and many other topics. Learning really is a lifelong process. At the Academy we recognize this and help to keep the learning going all year long! In addition to the semi-annual … [Read more...] about Learning Never Stops
Back from South Carolina
Last week it was my privilege to make two presentations at the annual state meeting and retreat of the South Carolina chapter of the National Academy of Elder Law Attorneys. The first presentation I gave discussed the ins and outs of trusts as beneficiaries of IRAs and retirement plans. Trusts can be used to protect the assets from various risks, such as creditors, divorce, the beneficiary’s own mismanagement, and even Medicaid (by using a Special Needs Trust). If a trust is structured properly, … [Read more...] about Back from South Carolina
