Experts say that creating a plan for what happens to your estate — regardless of how meager or massive your assets — is key for unmarried couples who want their commitment to each other protected in the event of death.
For some savers, the appeal of moving assets to a Roth individual retirement account often stems from the tax-free income it will deliver in their golden years.
One wrong decision can lead to expensive consequences, and good luck trying to persuade the IRS to give you a do-over.
If you are lucky enough to inherit a 401(k) or an IRA, when you don’t know what you are doing, you could put your inheritance at risk. The tax rules need to be followed to the T. These IRS inherited IRA rules will vary, depending on who has passed away, and who is inheriting the retirement accounts.
Contemplation of retirement can be both exciting and intimidating. Obviously, planning for the beginning of retirement should start early.
If you have an individual retirement account, do you recall filling out a beneficiary designation form? That’s the document that allows you to direct the IRA custodian to transfer your IRA to the people you name in the form.
If you think Estate Planning is simply the creation of a will or trust, you are missing a large portion of information, and could potentially have assets that do not flow according to the plan you have set up in your will or trust.
There is nothing wrong with letting your inheritance sit, until you have explored all of your options and have a full understanding of how a windfall can affect your personal taxes.
Your estate plan isn’t finished just because your attorney has drawn up a will. Proper asset titling is the next step.
The retirement income crisis has spurred Congress into action. Both the House and Senate introduced bills earlier this month, which would provide U.S. workers with expanded opportunities to participate in employer-provided retirement plans.