H – Have your financial institutions send you a copy of the beneficiary information they have on file for you. On more than a few occasions, we’ve seen financial institutions lose copies of beneficiary forms (or in some really egregious cases, destroy them). Asking for this information annually helps ensure that there are no surprises when you’re no longer here. The beneficiary form is the most important document when it comes to your retirement account. Therefore, even though it may seem monotonous to check these forms year after year – especially if you haven’t made any changes – it’s worth the effort.
Take a look at elder care facilities. Go shopping for your “next home” – now.Timing: Many facilities have long waiting lists (up to 5 years). And in addition, usually you can “defer” 3 times. So, buy yourself some time and get the advantage by signing up today. Don’t be surprised if you are asked for a down payment with your waiting list application, it can be up to one month’s rent ($3000-$6000). This down payment would be deducted from your initial rent/expenses or refunded if you decided not to move into the facility. Also, take into consideration rising costs. Consider renting a one-bedroom +den vs. 2-bedroom if your cash-flow is limited. That $500/month difference can be significant when rent increases by 3-5%/year.
This past summer the IRS had good news for those who missed the deadline for a 60-day retirement account rollover. The IRS will allow your late rollover to be accepted if you provide the receiving financial institution with a “self-certification.” The new relief procedure applies to 60-day rollovers from both company plans and IRAs. The IRS even provides a model letter that can be used. Self-certification is an immediate and cost-free fix for a missed rollover deadline. This new tool can potentially save you from taxes, penalties, and even the loss of your retirement savings.
This week's Slott Report Mailbag looks into complications with QCDs, inherited IRAs overseas, and annuity distributions.
Two challenges that retirees and pre-retirees are facing are rising medical costs as well as trying to figure out how to distribute their tax deferred retirement accounts, such as Traditional IRAs with the least amount of tax possible. There is a strategy that can “tackle” both challenges at once!
Jenny has a 401(k) plan at work and she has an IRA. Jenny is 72 but is still working. Her employer plan has a “still working” exception so Jenny does not have to take required minimum distributions (RMDs) from her plan. However, she does have to take RMDs from her IRA.
This week's Slott Report Mailbag looks into IRA transfers, unclaimed property, and IRA rollovers.
A Qualified Charitable Distribution (QCD) is way for you to move funds out of your IRA to a qualifying charity income tax free. Time is running out if you are interested doing a QCD for 2016. The rapidly-approaching deadline for a QCD for this year is December 31, 2016. If you are thinking this might be a good strategy for you for 2016, here are 5 rules you must know.
It’s no secret that millennials and other young workers today value technology in terms of helping them manage their financial affairs. However, the value that savers place on technology is not limited to young savers. In fact, Boomers are seeking out and incorporating technology into their financial lives at an increasingly rapid rate... a fact that numerous studies and surveys have found.
This week's Slott Report Mailbag looks into rollover IRAs and PLRs.
