Q. Our grandson will be graduating from college soon, and we would like to get him a gift which recognizes the beginning of his adult life and career. We thought that something of a “legal” nature might be worthwhile, and wondered if you have any ideas? A. Great thought and indeed I do. Why not arrange… Read More »
Posts Categorized: IRA Accounts
When Your Most Valued Assets Are Not Covered by Your Will
Q. My wife and I hold title to her home as joint tenants, and most of our cash assets are in the form of two large IRA accounts and one big annuity. We have basic wills which leaves everything to the other and then on to our children. Our son suggested that our wills may… Read More »
The ‘CARES ACT’ Allows You To Skip IRA MRD’s This Year
Q. What options would I have this year regarding my IRA Minimum Required Distributions, which I would normally take by year end? A. Good question. Here are three. While not intended as an exclusive list, they are top of mind for me: Option #1: Skip MRD’s Altogether This Year. This is a new option for… Read More »
Under the CARES Act, You May Be Eligible To Withdraw Up to $100k From Your IRA Without Penalty and “Maybe” Without Tax
Q. I hear that under the CARES Act, my wife and I may each be able to withdraw up to $100K from our IRA’s without penalty and without tax. Is that true? A. Well, not quite. Here’s the deal: Under the recently passed Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), Congress did recently… Read More »
New Law Makes Big Changes to IRA’s & Other Retirement Plans
Q. I heard that there is a new law which makes major changes to IRA’s and other retirement plans. Can you comment? A. The new law, signed by President Trump on December 20, 2019, and effective January 1, 2020, is called the “SETTING EVERY COMMUNITY UP for RETIREMENT ENHANCEMENT ACT”, or the “SECURE ACT” for… Read More »
Considerations When Setting Up & Managing Your IRA
Q. My IRA is a significant part of my assets, and I wonder if there are any special considerations when planning my affairs? A. Yes. Consider the following: Name Beneficiaries: Remember to name both primary and contingent beneficiaries. If you are married, the primary beneficiary would typically be your spouse, but name back-up beneficiaries as… Read More »
Is a Large IRA Disqualifying If I Need a Medi-Cal Subsidy?
Q. My wife needs care in a nursing home, and we really need a Medi-Cal subsidy to help with the cost, which may run close to $10,000 per month. However, I have a large IRA worth about $650,000. I have received conflicting advice as to whether my IRA would make her ineligible for a Medi-Cal… Read More »
Leaving an IRA to Grand Children? Beware the ‘Kiddie Tax’
Q. I was thinking about naming my minor grandchildren as beneficiaries of my IRA, to inherit in the event of my demise. But I heard something about the “Kiddie Tax” that might apply here. Can you share any thoughts about this? A. Yes, the so-called “Kiddie Tax” is essentially a special tax that was adopted… Read More »
Ensuring That Your Loved Ones Receive Your IRA
Q. I have a large Traditional IRA, and I wish to name my wife as primary beneficiary and my children from a previous marriage as backup beneficiaries. Can I lock in this beneficiary designation plan on the IRA Beneficiary Designation Form I sign at the bank? A. Unfortunately, not likely. While it is always a… Read More »
Is My IRA Safe from Creditors?
Q. My wife and I have a lot of credit card debt and we are having difficulty keeping it current. Most of our savings is in my IRA. Are these funds protected from our creditors? A. In California, Traditional IRA accounts enjoy only limited protection under state law, but expanded protection under federal bankruptcy law…. Read More »