The Beneficiary isn't the only thing you must check on your own or a client's beneficiary form. Here's a list of 3 other important things to make sure are present on the beneficiary form.
I’m still having a hard time believing it's true, but by the end of tomorrow, I'm going to become a father for the first time. I am obviously super excited and can't wait to experience all the joys – and even some of the pains – of fatherhood. I know that being a father is nothing to take lightly and there are many responsibilities. Some of the responsibilities are financially-oriented and for a few of those, there are tax efficient ways of achieving one's goals. Now obviously, everybody’s situation is different, but below are 3 tax-planning moves I plan to make as soon as possible once I become a father. Perhaps one or more of them is relevant for you and your planning.
An IRA account owner or beneficiary died and there was no named beneficiary for the account. The obvious question comes, "Who inherits the account and how do you calculate the required distribution?" Click to find the answer.
Do you have a will? Most people who need one, realize that they need one. Most of those people actually do something about it and put a will in place for their estate. But what is your will really doing for you?
In the current issue of its newsletter, Employee Plans News (Issue 2013-3, September 13, 2013), IRS has an article on one of the differences between divorce and legal separation as it impacts employer retirement plan rules.
You are married and have an IRA. You know you need to name a beneficiary for those funds. But what if you do not want to name your spouse as the beneficiary? Are you required to name him or her? Find the answer below.
For Valentine’s Day many of us gave or received tokens of love such as flowers, candy, jewelry, or a nice dinner in a restaurant. But now Valentine’s Day is over (much to Hallmark's chagrin). That makes this a good time to think about our beneficiaries. How much do we love them? Do you love your beneficiaries enough to take the time to check up on your beneficiary forms for your retirement accounts? You really should consider doing this because there are plenty of "un-loving" consequences if you don't.
Let's assume you have an IRA or retirement plan or annuity or even life insurance. All of those things have a beneficiary form. They do not pass through your will and they are not probate assets as long as you have completed or updated the beneficiary form.
Many of you have stepchildren. It's perfectly fine to name stepchildren as the beneficiary of your retirement funds. However, care must be taken when naming them as the beneficiary.
Ed Slott, America's IRA Expert, details the importance of having a current beneficiary form and describes how missing this key point can be costly for your intended retirement account beneficiaries. This IRAtv video goes through naming beneficiaries, using trusts as beneficiaries and lessons to learn to avoid costly mistakes and keep retirement plans updated.
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