Retirement assets may be a very large part of a person’s estate at death. It’s important to consider the income tax ramifications of naming a beneficiary, as well as protecting those assets for the beneficiaries. This article considers some of these issues. 6 Important Estate Planning Considerations – Part 5: Retirement Assets … [Read more...]
Another Use for a Roth IRA
Did you know that a minor child can have a Roth IRA? Of course, the child can only contribute as much as he has earned in any given year (up to $5,000), but in a recent Forbes article, William Baldwin suggests using a Roth as a strategy for building wealth for your children. Here’s a summary: If you have a child who is old enough to work, strike this deal: for every dollar your child earns, … [Read more...]
How Does a Roth IRA Avoid Probate?
One thing that sets Roth IRA’s apart from other retirement savings plans is their availability as an option for passing on a large chunk of money to your loved ones – outside of probate – when you pass away. How does this work? Tax Free A Roth IRA is a “tax-free” account, which means that you contribute to the account with after-tax dollars, and then (as long as you follow all the rules) the … [Read more...]
Is there a Required Minimum Distribution for a Roth IRA?
If you have a tax-deferred retirement savings plan, like a 401(k) or a traditional IRA, then you know that once you reach age 70 1/2, you’ll have to begin taking a Required Minimum Distribution (RMD) from your account each year. Very basically, the amount of your RMD is equal to your account balance divided by your life expectancy. It’s different each year, and if you don’t withdraw the correct … [Read more...]
