Converting to a Roth IRA Eliminating the Pain by using Life Insurance. Lanny D. Levin, CLU, ChFC, President LANNY D. LEVIN AGENCY, INC.

Size: px
Start display at page:

Download "Converting to a Roth IRA Eliminating the Pain by using Life Insurance. Lanny D. Levin, CLU, ChFC, President LANNY D. LEVIN AGENCY, INC."

Transcription

1 Converting to a Roth IRA Eliminating the Pain by using Life Insurance Lanny D. Levin, CLU, ChFC, President LANNY D. LEVIN AGENCY, INC.

2 The Roth Advantage as an estate tool Traditional IRAs are great for accumulation BUT Awful for distribution Awful for wealth perpetuation Roth IRAs are terrific for distributions Roth IRAs are terrific for wealth perpetuation

3 Traditional IRA Distributions subject to income tax Account balance is includible in estate Distributions are required at age 70 ½ For the wealthy IRA owner who doesn t need the assets for retirement, these are all negatives

4 Roth IRA Distributions are tax-free Account is includible in estate NO distributions are ever required For the wealthy Roth IRA owner, this means assets can grow tax-free for years, and distributions are received tax-free

5 Family Wealth Impact $1.5 million Roth IRA at death of husband Surviving spouse, 70 Life Expectancy: 16 years Value in 16 years: At 5%, $3,274,312 At 7%, $4,428,246

6 Family Wealth Impact-5% $3.2 million Roth IRA at death of mother,86 Surviving son, 61 Life Expectancy: 19 years Value in 19 years (for grandchild of mother): At 5%, $8,274,023

7 Family Wealth Impact-5% $3.2 million Roth IRA at death of mother,86 Surviving daughter, 61 Life Expectancy: 23 years Value in 23 years (for grandchild of mother): At 5%, $10,057,127

8 Family Wealth Impact-7% $4.4 million Roth IRA at death of mother,86 Surviving son, 61 Life Expectancy: 19 years Value in 19 years (for grandchild of mother) At 7%, $16,014,872

9 Family Wealth Impact-7% $4.4 million Roth IRA at death of mother,86 Surviving daughter, 61 Life Expectancy: 23 years Value in 23 years (for grandchild of mother) At 7%, $20,992,231

10 So why not just convert? Until 2010, Adjusted Gross Income must be less than $100,000 After 2009, TIPRA of 2005 removes the income requirement However: income tax must be paid on the Traditional IRA in order to convert

11 Idea: Maintain the Traditional IRA until death Utilize part of the Required Minimum Distribution (RMD) to purchase life insurance At death of IRA owner Wife inherits IRA Wife receives life insurance proceeds income tax free Surviving spouse uses life insurance to pay income tax cost of converting IRA to Roth IRA

12 Example RMD at age 70 on $1.5 MM account is $54,744 Income tax on $1.5 MM conversion to Roth IRA is $525,000 (35% rate assumed) Premium for $525,000 WL121 is $25,000 Funds left over to make further gift to child, can purchase additional life insurance if desired

13 Estate implications Life insurance can be owned and controlled by insured Life insurance will be includible in estate but deductible as marital deduction Proceeds paid to government for IRA conversion, so no proceeds at spouse s death Roth IRA includible in spouse s estate, same as Traditional IRA Absent other planning, if IRA must be tapped for her F.E.T., distributions are not subject to income tax

14 Questions?

15 Positioning Whole Life Insurance in the Retirement Marketplace

16 Tax Diversification We often talk with clients about the need to diversify their investments What about tax diversification? i. e. why not own a variety of vehicles with differing tax attributes Same reasoning as investment diversification one approach or another may turn out to be less attractive than we anticipated

17 Now that we ve touted all the great things about Qualified Plans.

18 The Darker Side of Qualified Plans They are governed by hundreds of rules, regulations and restrictions. The annual contribution to the plan is limited. Government rules require that most or all employees be included. Costs of administration, accounting, actuarial, and legal fees can be substantial and recurring. Withdrawal of funds prior to age 59½ will generally incur a tax penalty.

19 The Darker Side of Qualified Plans Plan accumulations are potentially subject to estate taxes at death and income taxes at time of distribution to heirs; taxes that may easily total over 70% of the distributions. Deductible contributions are made today when income tax rates are relatively low and may actually be distributed and taxed at a higher rate at retirement age.

20 What might be features of an ideal retirement plan? 1. Tax-deductible contributions 2. Safely accumulate money 3. Earn interest on a tax-deferred basis 4. Funds protected from creditors 5. Distribute funds tax-free 6. Self-completing in the event of death 7. Self-completing in the event of a disability Whole Life insurance has all but one of these features IRAs & Roth IRAs have only 4 out of 7!

21 The Three Phases of a Retirement Plan: The Timing of Taxation Contribution Accumulation Distribution QP Deductible Tax-Deferred Taxable NQP Non- Deductible Tax-Deferred Tax-Free Don t focus on the advantages of only one Phase

22 What else? Qualified Plan Contribution limited Account values unavailable till retirement Very little latitude to select participants Assets protected from claims of creditors Life Ins Alternative Contribution unlimited Account values available during working years Participation can be limited Assets protected from claims of creditors

23 Life Insurance an unlimited Roth IRA?

24 Non-deductible What s so great about a Roth IRA? Accumulates tax-deferred Distributions are tax-free No RMD required It is so attractive that Congress has limited its utilization by affluent people

25 What s so great about Life Insurance? Non-deductible Accumulates tax-deferred Distributions are tax-free No RMD required Creditor-proof Self-completing upon death Self-completing upon disability (optional)

26 AND.. Its utilization by affluent clients is NOT limited There is no limit on how much premiums someone can contribute to life insurance

27 Reasons to Own Life Insurance in Retirement 1. Traditional need. Retirement is simply under funded 2. Hidden need, e.g. loss of income streams when one spouse dies 3. Estate planning--the flip side of need 4. Stretch IRA planning (read Ed Slott)

28 Reasons to Own Life Insurance in Retirement 5. Pension Maximization strategies 6. Estate leverage for heirs 7. Charitable planning. Estate leverage for charitable giving 8. Second marriage, multiple children & grandchildren issues

29 Reasons to Own Life Insurance in Retirement 9. Business transfer issues 10. Tax diversification 11. Investment diversification 12. Provide for grandchildren at risk 13. College funding for grandchildren

30 The Power to Consume Whole life insurance ownership will allow other assets to produce greater income by providing access to the principal as well as interest as a source of income. Life insurance gives the owner the power to consume assets that would otherwise have to be managed in an ultra-conservative fashion in order to preserve the principle and the income stream it produces.

31 Pension Maximization Most retirees will select a joint and 50% survivor annuity as the retirement income option on their pension plan. The cost of selecting this option is a lower retirement income, as much as 15%, followed by an income to the surviving spouse of 50% of the lowered retirement income.

32 Pension Maximization The presence of permanent whole life insurance will enable a retiree to take a much higher retirement income in the form of a single life annuity because the insurance benefits will be available to a surviving spouse as a future source of income.

33 Charitable Remainder Trust The cost of successfully building a business or managing a personal investment portfolio is often measured by the enormous capital gains tax that must be paid when a business owner looks to sell a business interest or portfolio holdings in order to fund retirement income

34 Charitable Remainder Trust Often financial success brings with it a desire to express benevolence towards those charitable causes that are of particular interest. With a charitable remainder trust these two seemingly diverse needs and desires can be met with one device

35 Charitable Remainder Trust can provide: a lifetime income for a benevolent donor, a substantial bequest to a charity of choice, avoidance of the capital gains tax, and significant income tax deductions. The ownership of permanent whole life insurance by a donor makes it possible to achieve the desired charitable intent with all the collateral benefits while providing an intact transfer of estate assets to heirs

36 Our Goals Today 1. Provide you with a reminder of the opportunities in the retirement plan AND retirement planning markets 2. Remind you that life insurance is a triple-duty, fail-safe asset class unto itself 3. Remind you that people who disrespect life insurance and don t realize #2 don t really understand life insurance at all. 4. Remind you that you have strategic partners (LDLA and NBSI) willing to help you capitalize on the retirement markets

IRA Maximization. Wealth transfer strategies to enhance your legacy CLC.1124 (05.14)

IRA Maximization. Wealth transfer strategies to enhance your legacy CLC.1124 (05.14) Maximization Wealth transfer strategies to enhance your legacy CLC.1124 (05.14) Congratulations! For many years you ve put in the hard work planning, saving and investing for retirement. With all of that

More information

TEN WAYS TO USE LIFE INSURANCE (AN ESTATE PLANNING PERSPECTIVE)

TEN WAYS TO USE LIFE INSURANCE (AN ESTATE PLANNING PERSPECTIVE) TEN WAYS TO USE LIFE INSURANCE (AN ESTATE PLANNING PERSPECTIVE) Oregon State Bar Family Law Section Annual Conference October 2013 Kathy Belcher McGinty & Belcher Attys PC 694 High St NE PO Box 12806 Salem

More information

Maximize Your IRA. More than $4 trillion has accumulated. Inside This Guide Book

Maximize Your IRA. More than $4 trillion has accumulated. Inside This Guide Book More than $4 trillion has accumulated in the individual retirement accounts (IRAs) of Americans, even with the downturn in the stock market after 2007. IRAs clearly play an important role in the financial

More information

The owner is usually the purchaser of the policy. However, the owner may also acquire the policy by gift, sale, exchange, or bequest.

The owner is usually the purchaser of the policy. However, the owner may also acquire the policy by gift, sale, exchange, or bequest. Annuity Ownership Considerations What is an annuity owner? What are the owner's rights? Who should be the owner? What if the owner dies? Is the annuity includable in the owner's estate? What risks does

More information

Estate Planning for Retirement Benefits

Estate Planning for Retirement Benefits Estate Planning for Retirement Benefits April Caudill, J.D., CLU, ChFC, AEP Senior Advanced Planning Attorney Advanced Financial Security Planning Northwestern Mutual The Northwestern Mutual Life Insurance

More information

Beneficiary Planning Investor Guide. Design a plan for you and your beneficiaries

Beneficiary Planning Investor Guide. Design a plan for you and your beneficiaries Beneficiary Planning Investor Guide Design a plan for you and your beneficiaries Today is an important day. It is the day you will develop a comprehensive beneficiary plan that will let you relax, knowing

More information

Life Insurance Gifts: Planning Considerations

Life Insurance Gifts: Planning Considerations Life Insurance Gifts: Planning Considerations Gifts of life insurance are an additional option for charitable giving. While life insurance is not the answer to every financial planning and estate planning

More information

Wealth Structuring and Estate Planning. Your vision and your legacy. Life s better when we re connected

Wealth Structuring and Estate Planning. Your vision and your legacy. Life s better when we re connected Wealth Structuring and Estate Planning Your vision and your legacy Life s better when we re connected Inside 1 Helping you shape the future 2 The elements of wealth structuring 4 The power and flexibility

More information

Timely Retirement Plan Strategies

Timely Retirement Plan Strategies STEFFENSEN, HERMAN & DOGGETT, LLC COUNSELLORS AT LAW OLD CITY HALL 45 SCHOOL STREET BOSTON, MASSACHUSETTS 02108-3204 JON E. STEFFENSEN LOUISE F. HERMAN TELEPHONE (617) 523-7935 ANDREW T. DOGGETT FAX (617)

More information

The Whole Story of Whole Life

The Whole Story of Whole Life The Whole Story of Whole Life Introduction Whole life is the most versatile financial instrument ever devised for the protection of families and businesses and the creation and enhancement of wealth. To

More information

TOP 20 USES FOR LIFE INSURANCE In Estate, Business Succession, and Financial Planning

TOP 20 USES FOR LIFE INSURANCE In Estate, Business Succession, and Financial Planning TOP 20 USES FOR LIFE INSURANCE In Estate, Business Succession, and Financial Planning Permanent life insurance is not just about death benefits. It s an essential tool in estate, business succession, and

More information

YOUR PRACTICE AND POSITIONING FOR STRATEGIC ADVANTAGE LEADERS PARTNERS, INC. 100 S. WYNSTONE PARK DRIVE NORTH BARRINGTON, IL 60010 847.304.

YOUR PRACTICE AND POSITIONING FOR STRATEGIC ADVANTAGE LEADERS PARTNERS, INC. 100 S. WYNSTONE PARK DRIVE NORTH BARRINGTON, IL 60010 847.304. YOUR PRACTICE AND LEADERS PARTNERS POSITIONING FOR STRATEGIC ADVANTAGE ASSET LEVERAGE STRATEGIES INTRINSIC STOCK VALUE LOCK IN STRATEGY We all have our favorite stocks which most likely have taken a hit

More information

KEY FACTORS WHEN CONSIDERING A ROTH IRA CONVERSION

KEY FACTORS WHEN CONSIDERING A ROTH IRA CONVERSION KEY FACTORS WHEN CONSIDERING A ROTH IRA CONVERSION PERTINENT INFORMATION Mr. Kugler has accumulated $1,000,000 in a traditional IRA. Mrs. Kugler is the designated beneficiary (DB) and their daughter is

More information

The Whole Story of Whole Life

The Whole Story of Whole Life The Whole Story of Whole Life Introduction Whole life is the most versatile financial instrument ever devised for the protection of families and businesses and the creation and enhancement of wealth. To

More information

Protect your heirs by selecting the right structure for your Vanguard Variable Annuity

Protect your heirs by selecting the right structure for your Vanguard Variable Annuity Protect your heirs by selecting the right structure for your Vanguard Variable Annuity 5074 (04/11) Make the right choices when structuring your annuity When you buy a Vanguard Variable Annuity, you have

More information

Wealthiest Families Know: 2013 & Beyond

Wealthiest Families Know: 2013 & Beyond What the Wealthiest Families Know: 2013 & Beyond Determine How Estate Planning Strategies and Life Insurance May Help You Turn Your Goals into a Wealth Legacy Whether you acquired it or inherited it, wealth

More information

Retirement. A Guide to Roth IRAs

Retirement. A Guide to Roth IRAs Retirement A Guide to Roth IRAs A Roth IRA is an individual retirement account named for the late Senate Finance Committee Chairman, William Roth, Jr. who championed the creation of this new type of IRA.

More information

The Whole Story of. Whole Life

The Whole Story of. Whole Life The Whole Story of Whole Life Introduction Whole life is the most versatile financial instrument ever devised for the protection of families, businesses, and the creation and enhancement of wealth. To

More information

Retirement Account Gifts: Planning Considerations

Retirement Account Gifts: Planning Considerations Retirement Account Gifts: Planning Considerations Retirement accounts, such as 401(k) plans, 403(b) plans and Individual Retirement Accounts (IRA), are generally viewed as the better assets to leave through

More information

IRAS TAXES AND MOODY STEWARDSHIP. A Ministry of Moody Bible Institute

IRAS TAXES AND MOODY STEWARDSHIP. A Ministry of Moody Bible Institute MOODY STEWARDSHIP A Ministry of Moody Bible Institute IRAS AND TAXES IRAs and Other Qualified Retirement Plans IRAs, pensions, and estate planning are all excellent resources for preparing an enjoyable,

More information

Estate planning opportunities with Roth IRA conversions

Estate planning opportunities with Roth IRA conversions Estate planning opportunities with Roth IRA conversions Vanguard research March 2010 Executive summary. Beginning January 1, 2010, as part of the Tax Increase Prevention and Reconciliation Act of 2005,

More information

Charitable Trusts. Charitable Trusts

Charitable Trusts. Charitable Trusts Charitable Trusts Charitable Trusts Gifts to charitable trusts can be during lifetime or at the time of death. Charitable trusts provide an income interest to a person, persons, or charities for a period

More information

HERMENZE & MARCANTONIO LLC ADVANCED ESTATE PLANNING TECHNIQUES - 2015

HERMENZE & MARCANTONIO LLC ADVANCED ESTATE PLANNING TECHNIQUES - 2015 HERMENZE & MARCANTONIO LLC ADVANCED ESTATE PLANNING TECHNIQUES - 2015 I. Overview of federal, Connecticut, and New York estate and gift taxes. A. Federal 1. 40% tax rate. 2. Unlimited estate and gift tax

More information

The Whole Story of Whole Life

The Whole Story of Whole Life The Whole Story of Whole Life Your Freedom Guaranteed A GUIDE FOR CONSUMERS Introduction Whole life is a versatile financial instrument devised for the protection of families, businesses, and the creation

More information

Charitable Gift Annuities: Planning Considerations

Charitable Gift Annuities: Planning Considerations Charitable Gift Annuities: Planning Considerations A charitable gift annuity is a simple contract in which a donor transfers cash or securities to The First Church of Christ, Scientist, and we promise

More information

When is the best time to pay income taxes on an IRA?

When is the best time to pay income taxes on an IRA? When is the best time to pay income taxes on an IRA? The Dilemma Many people who have been successful in saving for retirement have established a large enough nest-egg to be able to create a legacy for

More information

The New Era of Wealth Transfer Planning #1. American Taxpayer Relief Act Boosts Life Insurance. For agent use only. Not for public distribution.

The New Era of Wealth Transfer Planning #1. American Taxpayer Relief Act Boosts Life Insurance. For agent use only. Not for public distribution. The New Era of Wealth Transfer Planning #1 American Taxpayer Relief Act Boosts Life Insurance For agent use only. Not for public distribution. In January 2013 Congress stepped back from the fiscal cliff

More information

IDEAS December 2013. Life Insurance and Roth IRAs: The Dynamic Duo

IDEAS December 2013. Life Insurance and Roth IRAs: The Dynamic Duo IDEAS December 2013 Life Insurance and Roth IRAs: The Dynamic Duo Summary Clients who face income from minimum distributions on qualified plans and IRAs but do not need that income can benefit from a conversion

More information

IRA Tax Fundamentals and Strategies

IRA Tax Fundamentals and Strategies IRA Tax Fundamentals and Strategies Today s Objectives Today I ll demonstrate how you can improve your legacy by describing what IRA investors typically do, & comparing it to two simple but powerful ideas

More information

Using Cash Value Life Insurance for Retirement Savings

Using Cash Value Life Insurance for Retirement Savings American Brokerage Services, Inc. 805 E Willow Grove Ave. Suite 2-B Wyndmoor, PA 1-888-227-3131 500 annuities1@absgo.com www.absgo.com Using Cash Value Life Insurance for Retirement Savings American Brokerage

More information

Retirement Plan Distributions Choices & Opportunities

Retirement Plan Distributions Choices & Opportunities Retirement Plan Distributions Choices & Opportunities Leaving Your Job: Things to Think About» What you want to do next Work full time? Part time? Retire? How much will your lifestyle cost?» Continuing

More information

Make a Gift to National Stroke Association

Make a Gift to National Stroke Association Make a Gift to National Stroke Association Your gift today can help further National Stroke Association s mission to reduce the incidence and impact of stroke. If you are in interested in making a charitable

More information

WHICH TYPE OF IRA MAKES THE MOST SENSE FOR YOU?

WHICH TYPE OF IRA MAKES THE MOST SENSE FOR YOU? WHICH TYPE OF IRA MAKES THE MOST SENSE FOR YOU? In 1974, when IRAs were first created, they were rather simple and straightforward. Now, 35 years later, it s challenging to know the best way to save more

More information

Methods of Giving to the University of Florida

Methods of Giving to the University of Florida Gift Planning Guide Methods of Giving to the University of Florida 4 Cash 5 Appreciated Securities 6 Retirement Plan Assets 7 Charitable Lead Trust 8 Life Income Gifts 10 Real Estate I am pleased to have

More information

Charitable Giving and Retirement Assets

Charitable Giving and Retirement Assets Charitable Giving and Retirement Assets Individuals who save for retirement likely own an Individual Retirement Account (IRA), one or more qualified retirement plan accounts (e.g., a 401(k) plan) or both.

More information

Roth IRA. Explore the Opportunity. 2 RBC Wealth Management

Roth IRA. Explore the Opportunity. 2 RBC Wealth Management Roth IRA Explore the Opportunity 2 RBC Wealth Management N o w Y o u H a v e E v e n M o r e F l e x i b i l i t y i n H o w Y o u I n v e s t f o r Y o u r F u t u r e Retirement a time that you work

More information

EVERYTHING YOU OWN & EVERYONE YOU CARE ABOUT. An Estate Planning Primer

EVERYTHING YOU OWN & EVERYONE YOU CARE ABOUT. An Estate Planning Primer EVERYTHING YOU OWN & EVERYONE YOU CARE ABOUT An Estate Planning Primer For The Clients Of 7350 Cirque Drive W, Suite 201 University Place, WA 98467 (253) 759 8354 www.ppatpa.com Presented By T. Gary Connett

More information

Part VII Individual Retirement Accounts

Part VII Individual Retirement Accounts Part VII are a retirement planning tool that virtually everyone should consider. The new IRA options also have made selecting an IRA a bit more complicated. IRA Basics The Traditional IRA is an Individual

More information

MFS Retirement Strategies Stretch IRA and distribution options READY, SET, RETIRE. Taking income distributions during retirement

MFS Retirement Strategies Stretch IRA and distribution options READY, SET, RETIRE. Taking income distributions during retirement MFS Retirement Strategies Stretch IRA and distribution options READY, SET, RETIRE Taking income distributions during retirement ASSESS YOUR NEEDS INCOME WHEN YOU NEED IT Choosing the right income distribution

More information

When is the best time to pay income taxes on an IRA?

When is the best time to pay income taxes on an IRA? When is the best time to pay income taxes on an IRA? The dilemma Many people who have been successful in saving for retirement have established a large enough nest-egg to be able to create a legacy for

More information

Stretch IRA. What is a stretch IRA? Why stretch?

Stretch IRA. What is a stretch IRA? Why stretch? Stretch IRA Stretch IRA strategies are a popular approach to transferring wealth. Investors are using stretch IRAs to extend their required minimum distributions (RMDs) over an increased period of time,

More information

Guide to Individual Retirement Accounts. Make a secure retirement yours

Guide to Individual Retirement Accounts. Make a secure retirement yours Guide to Individual Retirement Accounts Make a secure retirement yours Retirement means something different to everyone. Some dream of stopping employment completely and some want to continue working.

More information

Preparing for Your Retirement: An IRA Review

Preparing for Your Retirement: An IRA Review Preparing for Your Retirement: An IRA Review How much of your earning power will be available for your use when you retire? What will happen to your standard of living when your income ceases at retirement?

More information

Charitable Giving and Retirement Assets

Charitable Giving and Retirement Assets Charitable Giving and Retirement Assets In this issue: Basics of IRAs Retirement Plan Basics Lifetime Taxation of Distributions from Retirement Accounts Estate Taxation of IRAs and Tax-Deferred Retirement

More information

A Story of Guarantees and Financial Versatility

A Story of Guarantees and Financial Versatility A Story of Guarantees and Financial Versatility Whole Life Insurance A Consumer Brochure for Whole Life Understanding Introduction Whole life is a versatile financial product that provides unique benefits

More information

Advanced Annuity Sales Ideas

Advanced Annuity Sales Ideas Advanced Annuity Sales Ideas Thomas H. Duncan, JD, CLU, ChFC Senior Director, Advanced Consulting Group Nationwide Financial Below are 25 sales ideas using Nationwide s deferred and immediate annuities.

More information

Charitable Gifts of IRA / IRD Assets The Good, the Bad and the Ugly. Susan C Dunlop Luther Seminar - Gary G Hargroves Thompson & Associates

Charitable Gifts of IRA / IRD Assets The Good, the Bad and the Ugly. Susan C Dunlop Luther Seminar - Gary G Hargroves Thompson & Associates 1 IRD Definition: Charitable Gifts of IRA / IRD Assets The Good, the Bad and the Ugly Susan C Dunlop Luther Seminar - Gary G Hargroves Thompson & Associates Minnesota Planned Giving Conference November

More information

Gift and estate planning: Opportunities abound

Gift and estate planning: Opportunities abound Gift and estate planning: Opportunities abound Vanguard research July 2013 Executive summary. Under federal gift and estate tax rules, individuals can potentially make significant gifts that are exempt

More information

The. Estate Planner. Do you have a liquidity plan? Being elastic can be fantastic. A blended family requires smart estate planning

The. Estate Planner. Do you have a liquidity plan? Being elastic can be fantastic. A blended family requires smart estate planning The Estate Planner January/February 2010 Do you have a liquidity plan? Being elastic can be fantastic Stretch your retirement savings for yourself and your heirs A blended family requires smart estate

More information

Retirement Plans: Evaluating the New Roth IRA Conversion Opportunity

Retirement Plans: Evaluating the New Roth IRA Conversion Opportunity Retirement Plans: Evaluating the New Roth IRA Conversion Opportunity By Christine Fahlund Starting next year, investors will have the option of converting all or part of their money in a traditional IRA

More information

Roth IRA Conversion. (Frequently Asked Questions) #17666 05/10

Roth IRA Conversion. (Frequently Asked Questions) #17666 05/10 Roth IRA Conversion (Frequently Asked Questions) #17666 05/10 The following material is for informational purposes only. It represents a summary of the most common questions asked about Roth IRAs and the

More information

Common mistakes in estate planning

Common mistakes in estate planning Common mistakes in estate planning Disclaimers The Lyon Group is not in the business of providing tax, legal or accounting advice, and none is intended nor should be inferred from the foregoing comments

More information

USING IRA ASSETS TO ADDRESS YOUR WEALTH TRANSFER GOALS

USING IRA ASSETS TO ADDRESS YOUR WEALTH TRANSFER GOALS U.S. TRUST FIDUCIARY SERVICES FOR MERRILL LYNCH CLIENTS USING IRA ASSETS TO ADDRESS YOUR WEALTH TRANSFER GOALS Trusteed IRAs from U.S. Trust Working together, Merrill Lynch and U.S. Trust bring you the

More information

Planning Retirement in a Rising Tax Environment

Planning Retirement in a Rising Tax Environment Planning Retirement in a Rising Tax Environment (Based on the published article written in the 2014 semi-annual edition of Wealth Channel Magazine) By Francis J. Lojewski, MSFS, ChFC, CLU, LUTCF, AEP One-sentence

More information

Charitable Gift Annuity (CGA)

Charitable Gift Annuity (CGA) Charitable Gift Annuity (CGA) High income and high net worth clients by nature seem to be more giving people than the general public (mainly because they have the extra money to give). There are many different

More information

IRA Opportunities. Traditional IRA vs. Roth IRA: Which is right for you? What kind of retirement funding vehicle is right for you?

IRA Opportunities. Traditional IRA vs. Roth IRA: Which is right for you? What kind of retirement funding vehicle is right for you? IRA Opportunities. Traditional IRA vs. Roth IRA: Which is right for you? What kind of retirement funding vehicle is right for you? Now more than ever, an Individual Retirement Account (IRA) may help provide

More information

Extending Retirement Assets: A Stretch IRA Review

Extending Retirement Assets: A Stretch IRA Review Extending Retirement Assets: A Stretch IRA Review Are you interested in the possibility of using the funds in your traditional IRA to provide income to one or more generations of family members? Table

More information

Charitable Gifts of IRA/IRD via a Beneficiary Statement - Good. Charitable Gifts of IRA / IRD Assets The Good, The Bad and The Ugly.

Charitable Gifts of IRA/IRD via a Beneficiary Statement - Good. Charitable Gifts of IRA / IRD Assets The Good, The Bad and The Ugly. Charitable Gifts of IRA / IRD Assets The Good, The Bad and The Ugly Susan C Dunlop Luther Seminary - Gary G Hargroves Thompson & Associates Minnesota Planned Giving Council Conference 11-5-14 Definitions

More information

Key Tax Planning Strategies for 2010 & Beyond

Key Tax Planning Strategies for 2010 & Beyond December 2009 Financial Planning Insights James L. Joslin, CFP Lee C. McGowan, CFP Key Tax Planning Strategies for 2010 & Beyond How can one soften the blow should tax rates be increased? That is the question

More information

PRIVATE BANKING INSIGHTS

PRIVATE BANKING INSIGHTS PRIVATE BANKING INSIGHTS May 2014 Susan Valente Webster Private Bank svalente@websterbank.com 203-328-8190 Two Stamford Plaza 281 Tresser Blvd Stamford, CT 06901 In This Issue Q1 2014 Investment Strategy

More information

supplement your retirement income maintain your lifestyle

supplement your retirement income maintain your lifestyle supplemental income using life insurance supplement your retirement income maintain your lifestyle Investment and Insurance Products: Are Not Deposits of Any Bank Are Not FDIC Insured Are Not Insured By

More information

Modern Estate Planning Made Easy

Modern Estate Planning Made Easy Modern Estate Planning Made Easy Presented March 9, 2011 By Mark J. Bradley Ruder Ware 800-477-8050 mbradley@ruderware.com Ruder, Ware, L.L.S.C. 500 First Street, Suite 8000 P.O. Box 8050 Wausau, WI 54402-8050

More information

Estate Planning. Some common tools used to help meet those particular needs include:

Estate Planning. Some common tools used to help meet those particular needs include: Estate Planning The Importance of Having an Estate Plan Having an estate plan is one of the most important things you can do for your family. It's not just about planning for estate taxes; it's about developing

More information

Creating a Life Legacy

Creating a Life Legacy Creating a Life Legacy Prepared for: Client Presented by: Bernie Geiss, TEP, FEA, CLU, CFP Cove Continuity Advisors Inc. October 2009 Issues and Considerations Successful investors have accumulated capital

More information

Is the Roth IRA Conversion For Me?

Is the Roth IRA Conversion For Me? Is the Roth IRA Conversion For Me? By Dennis A. Suckstorf, CFP, ChFC, AFC. Financial Advantage, Inc. (www.financialadvantageinc.com) Prior to 2010, an individual could only convert a traditional IRA (qualified

More information

The Effective Use of Life Insurance in Wealth Transfer Planning

The Effective Use of Life Insurance in Wealth Transfer Planning INDIVIDUAL LIFE INSURANCE A Consumer Resource The Effective Use of Life Insurance in Wealth Transfer Planning A Guide for Professionals and Consumers Table of Contents INTRODUCTION What is Wealth Transfer

More information

TAX ADVANTAGED COLLEGE PLANNING WITH SECTION 529 PLANS 1

TAX ADVANTAGED COLLEGE PLANNING WITH SECTION 529 PLANS 1 $AVING FOR COLLEGE TAX ADVANTAGED COLLEGE PLANNING WITH SECTION 529 PLANS 1 It s a difficult world putting your kids through college these days. First, no-one seems to do the four year plan anymore. Plus,

More information

Stretch Your Net Worth Take Care of Your Family Take Care of Yourself. The Stretch IRA Concept. from American National Insurance Company

Stretch Your Net Worth Take Care of Your Family Take Care of Yourself. The Stretch IRA Concept. from American National Insurance Company Stretch Your Net Worth Take Care of Your Family Take Care of Yourself The Stretch IRA Concept from American National Insurance Company Stretch Your Net Worth Take Care of Your Family Take Care of Yourself

More information

The. Estate Planner. Should your life insurance be in an FLP? Special needs require a special needs trust. An estate planning strategy for your heirs

The. Estate Planner. Should your life insurance be in an FLP? Special needs require a special needs trust. An estate planning strategy for your heirs The Estate Planner July/August 2008 Should your life insurance be in an FLP? Special needs require a special needs trust The inheritor s trust An estate planning strategy for your heirs Estate Planning

More information

FInancIal PlannIng In an uncertain tax landscape. understanding today s tax environment // strategies for 2012 // Planning for 2013

FInancIal PlannIng In an uncertain tax landscape. understanding today s tax environment // strategies for 2012 // Planning for 2013 FInancIal PlannIng In an uncertain tax landscape understanding today s tax environment // strategies for 2012 // Planning for 2013 Key Takeaways Without further changes by Congress, tax rates are scheduled

More information

CASE District IV Conference Fort Worth, Texas. March 25, 2013. What true assets does your family possess?

CASE District IV Conference Fort Worth, Texas. March 25, 2013. What true assets does your family possess? HOW TO INITIATE GIFT PLANNING DISCUSSIONS WITH DONORS The Charitable Planning Process CASE District IV Conference Fort Worth, Texas March 25, 2013 Laura Hansen Dean, J.D. Attorney at Law (Texas, Indiana)

More information

Funding Options. Life Insurance:

Funding Options. Life Insurance: Living Trusts There are several disadvantages of wills. Wills go through probate and probate can be expensive. It can cause lengthy delays in the distribution of property to your heirs. Your will is open

More information

Overview of Different Types of Trusts

Overview of Different Types of Trusts Overview of Different Types of Trusts Living Trusts The living trust is very popular in America. A living trust helps you avoid the cost and delay of probate. You can also avoid the dangers from jointly

More information

Life insurance solutions for. business owners

Life insurance solutions for. business owners Life insurance solutions for business owners Life insurance solutions for business owners What s the best life insurance for business owners? It depends on where you see yourself in the future and at which

More information

Life Portraits SS Financial Analysis FactFinder

Life Portraits SS Financial Analysis FactFinder Life Portraits SS Financial Analysis FactFinder Client and Family Information Personal Needs Presentations Client Name Date of Birth Retirement Age Address Gender City State, Zip Income Tax Bracket Home

More information

10 common IRA mistakes

10 common IRA mistakes 10 common mistakes Help protect your valuable retirement assets Not FDIC Insured May Lose Value No Bank Guarantee Not Insured by Any Government Agency You ve worked hard to build your retirement assets......

More information

chart retirement plans 8 Retirement plans available to self-employed individuals include:

chart retirement plans 8 Retirement plans available to self-employed individuals include: retirement plans Contributing to retirement plans can provide you with financial security as well as reducing and/or deferring your taxes. However, there are complex rules that govern the type of plans

More information

Understanding. What You Will Learn

Understanding. What You Will Learn Understanding IRA and Retirement Plan Distributions Michael A. Simon, Esq. Law Offices of Michael A. Simon 4425 Jamboree Road, Suite 190 Newport Beach, California 92660 (949) 954-6999 msimon@simon-lawfirm.com

More information

16. Tax on Lifetime Gifts

16. Tax on Lifetime Gifts 16. Tax on Lifetime Gifts Let s suppose you have reviewed your estate and determined that you are subject to federal estate tax. (Under normal circumstances, your individual estate is taxable if it exceeds

More information

Maximize Retirement Income and Preserve Accumulated Wealth

Maximize Retirement Income and Preserve Accumulated Wealth Maximize Retirement Income and Preserve Accumulated Wealth Welcome! Steven M. Dalton, CFP 40 South River Road, Unit 15 Bedford, NH 03110 603-668-2303 Securities offered through Comprehensive Asset Management

More information

IRA Beneficiaries: Trusts, Estates and Charities

IRA Beneficiaries: Trusts, Estates and Charities Strategic Thinking IRA Beneficiaries: Trusts, Estates and Charities By Kenneth A. Johnson TRUSTS AS BENEFICIARY Frequently, people will desire and be advised to name a trust as beneficiary of their IRA.

More information

To Roth or Not Revised September 2013

To Roth or Not Revised September 2013 Introduction To Roth or Not Revised September 2013 Tax law allows all taxpayers (without income limitation) to convert all or part of their traditional IRAs to Roth IRAs. Even though conversion to Roth

More information

Estate Tax Concepts. for Edward and Tina Collins

Estate Tax Concepts. for Edward and Tina Collins Estate Tax Concepts for Edward and Tina Collins Joseph Davis, CLU, ChFC 215 Broad Street Charlotte, North Carolina 26292 Phone: 704-927-5555 Mobile Phone: 704-549-5555 Fax: 704-549-6666 Email: joseph.davis@aol.com

More information

Planning your estate

Planning your estate Planning your estate A general guide to estate planning Policies issued by: American General Life Insurance Company The United States Life Insurance Company in the City of New York What is estate planning?

More information

Taking Your Required Minimum Distributions

Taking Your Required Minimum Distributions RETIREMENT Taking Your Required Minimum Distributions A Guide for Retirement Account Owners and Beneficiaries Taking Distributions During Your Lifetime Most people are required to start withdrawing from

More information

Diabetes Partnership of Cleveland s Planned Giving Guide

Diabetes Partnership of Cleveland s Planned Giving Guide Diabetes Partnership of Cleveland s Planned Giving Guide Diabetes Partnership of Cleveland s Planned Giving Guide TABLE OF CONTENTS Life Insurance Gifts Page 2 Charitable Gifts of IRAs.Page 3 Charitable

More information

Gifts to the Foundation or Endowed Gifts Help ensure that the residents of St. Mary s Home will continue

Gifts to the Foundation or Endowed Gifts Help ensure that the residents of St. Mary s Home will continue Gifts to the Foundation or Endowed Gifts Help ensure that the residents of will continue to receive the comprehensive care they need, long into the future. Your gift to either Foundation or an endowed

More information

Estate planning strategies using life insurance in a trust Options for handling distributions, rollovers and conversions

Estate planning strategies using life insurance in a trust Options for handling distributions, rollovers and conversions Estate planning strategies using life insurance in a trust Options for handling distributions, rollovers and conversions Life s better when we re connected Table of contents Find your questions review

More information

Rules for Taking Distributions from Tax-Deferred Retirement Savings Plans

Rules for Taking Distributions from Tax-Deferred Retirement Savings Plans Rules for Taking Distributions from Tax-Deferred Retirement Savings Plans Putting money into an employer s retirement plan or IRA is just the first step toward financial security in retirement. How you

More information

Traditional and Roth IRAs

Traditional and Roth IRAs october 2012 Understanding Traditional and Roth IRAs summary An Individual Retirement Account (IRA) is a powerful savings vehicle that can help you meet your financial goals. As shown in the chart on page

More information

The. Estate Planner. FAQs about donating real estate. The Roth IRA: Is it time to convert? It s intentionally defective?

The. Estate Planner. FAQs about donating real estate. The Roth IRA: Is it time to convert? It s intentionally defective? The Estate Planner September/October 2009 FAQs about donating real estate The Roth IRA: Is it time to convert? It s intentionally defective? How an IDGT can benefit your estate plan Estate Planning Red

More information

Total Financial Solutions. Practical Perspectives on Tax Planning

Total Financial Solutions. Practical Perspectives on Tax Planning TM Trademark used under authorization and control of The Bank of Nova Scotia. ScotiaMcLeod is a division of Scotia Capital Inc., Member CIPF. All insurance products are sold through ScotiaMcLeod Financial

More information

White Paper: Using Cash Value Life Insurance for Retirement Savings

White Paper: Using Cash Value Life Insurance for Retirement Savings White Paper: Using Cash Value Life Insurance for Retirement Savings www.selectportfolio.com Toll Free 800.445.9822 Tel 949.975.7900 Fax 949.900.8181 Securities offered through Securities Equity Group Member

More information

Charitable giving techniques

Charitable giving techniques Charitable giving techniques Helping achieve your charitable and estate-planning goals Trust tip A trust can be thought of as having two parts an income interest and a remainder interest. The income interest

More information

BASICS * Irrevocable Life Insurance Trusts

BASICS * Irrevocable Life Insurance Trusts KAREN S. GERSTNER & ASSOCIATES, P.C. 5615 Kirby Drive, Suite 306 Houston, Texas 77005-2448 Telephone (713) 520-5205 Fax (713) 520-5235 www.gerstnerlaw.com BASICS * Irrevocable Life Insurance Trusts Synopsis

More information

Life insurance. Shedding light on. a practical guide to helping you achieve a lifetime of financial security

Life insurance. Shedding light on. a practical guide to helping you achieve a lifetime of financial security Shedding light on Life insurance a practical guide to helping you achieve a lifetime of financial security Learn more about: Safeguarding your loved ones Protecting your future Ensuring your dreams live

More information

GIVE AND YOU SHALL RECEIVE CHARITABLE GIVING, CREATING A PLAN THAT S RIGHT FOR YOU

GIVE AND YOU SHALL RECEIVE CHARITABLE GIVING, CREATING A PLAN THAT S RIGHT FOR YOU GIVE AND YOU SHALL RECEIVE CHARITABLE GIVING, CREATING A PLAN THAT S RIGHT FOR YOU Contents 1 Give and you shall receive 3 Techniques summary 5 Planning for charitable giving NOT FDIC OR NCUA INSURED NOT

More information

ANNUITIES: WHAT ARE THEY AND HOW ARE THEY USED

ANNUITIES: WHAT ARE THEY AND HOW ARE THEY USED ANNUITIES: WHAT ARE THEY AND HOW ARE THEY USED (FORC Journal: Vol. 18 Edition 1 - Spring 2007) 1 An annuity is a contract under which the owner of the contract pays money or transfers assets to the obligor

More information