Forbes: “An inherited retirement account is more than a simple pot of cash. Often, an heir can stretch out withdrawals from an individual retirement account over his or her life expectancy, gaining decades of tax-deferred or (in the case of a Roth IRA) tax-free investment growth. But the IRS rules for doing this can be tricky. If you’re inheriting an IRA or 401(k), here’s what you need to know.”
Forbes: ” I was a guest on an estate planning radio show recently when a listener from Traverse City, Mich., phoned with an eye-opening question. ‘Do I have to convert a traditional IRA to a Roth to make it a ‘stretch’ IRA?‘ she asked. The short answer is: Absolutely not. But what a wake-up call! It made me realize that, with all the talk this year about Roth conversions, plenty of well-informed people are understandably confused about this issue.
Forbes: “After you grab your employer’s 401(k) match, it’s time to fund an IRA. But which kind is best? Almost everyone who has earned income can benefit from using an Individual Retirement Arrangement, or, as they’re more commonly called, an Individual Retirement Account. IRAs come in several different versions, each with its own tax treatment and rules on who can contribute. Here is a comparison of some of those features:”
Forbes: “More Americans will be handing down IRAs to their kids. A new decision suggests it might be a creditor proof inheritance. But nothing is certain yet. In what estate planners and bankruptcy lawyers are saying could be a significant case, a federal bankruptcy judge in Minnesota has allowed a bankrupt woman to keep a $63,000 individual retirement account inherited from her father. IRAs inherited from someone other than your spouse have traditionally not been protected in bankruptcy under either federal or state laws, and thus have been available for creditors to grab.”
The case is In re Nessa, a federal bankruptcy case out of Minnesota.
Forbes: “If you miss the 60-day rollover deadline, will the IRS be sympathetic? You can move wealth from a company pension plan, a 401(k) or traditional Individual Retirement Account into a traditional IRA without owing any taxes in what’s known as a ‘rollover.’ . . . a surprising number of taxpayers make mistakes when doing a simple rollover and end up either paying taxes prematurely or paying an expert like me to help them clear up the mess.”
This article was written by Robert S. Keebler, CPA, MST, AEP (Distinguished) is a partner with Baker Tilly Virchow Krause, LLP and chair of the Baker Tilly Financial and Estate Planning Group. He is the author of The Rebirth of Roth, A CPA’s Ultimate Guide for Client Care. Mr. Keebler was named by CPA Magazine as one of the Top 100 Most Influential Practitioners in the United States and one of the Top 40 Tax Advisors to Know During a Recession.
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