In a Private Letter Ruling (PLR ) on June 20, 2014, the IRS ruled that a surviving spouse who received proceeds from her deceased husband’s IRA through a trust could not roll over the IRA funds because more than 60 days had passed since their receipt. The PLR tells us what not to do when a trust is the beneficiary of an IRA. “Ben’s” IRA named a trust as beneficiary of his IRA. The trustees were his two children. Ben’s wife “Ann” was to receive 25% of the IRA. After Ben died, the … [Read more...] about What NOT To Do When A Trust Is The IRA Beneficiary
As traditional pension plans have largely been eliminated in recent decades, it is very common for people to have a large portion of their financial wealth held in an Individual Retirement Plan (IRA). Naming a trust as the beneficiary of an IRA can reduce the chances of probate and ensures the IRA is covered by the protections built-in to the trust. But did you know that you can also require that the IRA distributions be stretched over the lifetime of a beneficiary? We often use … [Read more...] about Stretching Your IRA for the Next Generation
Only a generation ago, many people could look forward to a secure retirement, as long as they devoted much of their working life to a reliable and stable company. For our grandparents, retirement meant a check in the mail every month, and often included health insurance coverage for the rest of their lives. … [Read more...] about Is a 401k Right for You?
An IRA, or Individual Retirement Account, is an investment account purchased directly from a financial institution, not through your employer. There are two basic types of IRAs: traditional and Roth. Which one is right for you will depend upon your financial goals. A Traditional IRA allows you to contribute on a pre-tax basis, meaning that your contributions are not taxed before they’re placed into your account. Instead, taxes are applied when you make withdrawals, an ideal arrangement if … [Read more...] about How to Choose the Right IRA for You