Category: Retirement Benefits Planning

IRA’s and Nontraditional Assets

Upon retiring, many corporate executives and other employees decide to start a second career.  In some cases, these people roll over funds from their corporate retirement accounts to an individual retirement account (IRA).  The IRA then purchases a business that the person runs.  The goal, of course, is to avoid currently paying tax on the […]

Written by on May 20, 2016

Cashing Out of the Corporate Business

Business owners frequently plan to fund their retirement with the proceeds from a sale of their business.  However, they frequently fail to take the steps necessary to maximize the after-tax proceeds from the sale.  One such step relates to closely-held corporations and involves making an “S election” for tax purposes. Often, a small business will […]

Written by on April 8, 2016

Retirement Plans and Trusts

People frequently use trusts as part of their financial and estate planning. A beneficiary typically may designate a trust to receive an interest in a qualified defined contribution plan (qualified plan) or IRA on his or her death. The problem is that the trust may not be able to stretch out the distributions from the qualified defined […]

Written by on March 11, 2016

Charitable Contributions of Retirement Plan Benefits

Each year Americans give billions of dollars to charity. Gifting an interest in a defined contribution plan or IRA to a charity can be a very effective tax strategy for making charitable gifts. (Note: This discussion does not apply to Roth IRAs; they are subject to a different set of rules.) Special Rule for IRAs IRA owners over […]

Written by on February 26, 2016

When Deferring Distributions is Not a Good Idea

In previous posts we have discussed the unique characteristics of defined contribution plans (such as profit-sharing plans and 401(k) plans) and IRAs. We noted that a person is usually better off delaying distributions from a defined contribution plan or IRA as long as possible. There are some situations where deferring distributions is not a good strategy. A […]

Written by on February 19, 2016

Five Traits of Retirement Plans (Traits 4 & 5)

We started this series of articles two weeks ago by noting the five key traits of qualified defined contribution retirement plans, such as profit-sharing plans or 401k plans, and IRAs. We mentioned the need to consider these characteristics when planning for these assets, including dispositions upon the plan beneficiary’s death. The traits that we listed […]

Written by on February 12, 2016

Five Traits of Retirement Plans (Traits 1-3)

Last week we discussed five traits of 401(k) plans, profit sharing plans, and IRAs. We need to keep these traits in mind to maximize the economic benefits of these assets. These traits come to the forefront when we are doing estate planning. This week we discuss three of the five traits and their impact:  (1) plan income […]

Written by on February 5, 2016

Five Traits of Retirement Plans

For many people, an interest in a retirement plan, such as a profit-sharing plan, 401(k) plan, or individual retirement account (IRA), is their most significant asset. Planning for these assets is a real challenge. The complexity in this area is monumental. There are many different types of retirement plans. The retirement plan that we are focusing […]

Written by on January 29, 2016