Preparing for Sudden Wealth

Category: Distribution Planning

December 24, 2015  |  

Required Minimum Distributions (RMDs) – Time is Running Out

Key Takeaways What are RMDs? Do they apply to you? How to calculate them.  If you or a spouse has a 401(k) or an IRA, and turned 70 1/2 in 2014 or earlier, don’t forget about your big deadline looming on December 31. And I’m not talking about New Year’s Eve plans. December 31 is the date by which you must take your annual Required Minimum Distribution (RMD), or face significant penalties. We’re always surprised […]

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Annuities

August 26, 2015  |  

Are Annuities Right for You? 3 Important Considerations

 Key Takeaways Annuities are designed to provide tax-deferred growth by taking dollars that you would have otherwise invested and placing them within an “insurance wrapper.” Annuity payouts can be immediate or deferred, with the deferred option being either fixed or variable. Before taking the annuity plunge, make sure you have exhausted all other pre-tax retirement plans and have a long-term time view. Also your tax bracket should be high, so the annuity’s tax deferral benefit […]

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July 17, 2014  |  

IRS Reverses Long-Standing Position on One-Rollover-per-Year Rule

The IRS has indicated that it will follow the recent Tax Court decision in Bobrow v. Commissioner, which held that a taxpayer may make only one tax-free, 60-day rollover between IRAs within each 12-month period, regardless of how many IRAs he or she maintains. However, the IRS will not apply this new interpretation to any rollover that involves an IRA distribution occurring before January 1, 2015.  Also note that Direct transfers between IRA trustees and […]

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