Timely and FREE Inherited IRA Help and Information
for Estate Managers
account holders and beneficiaries searching the internet for
free help may easily get conflicting information and outdated
data or outright -- wrong advice that may only make things
worse. Some will get the sales "sell up" all because you
respond. A trusted and respected long term advisor is
ready to take your call about your Inherited IRA (Beneficiary IRA) situation or respond to your email to
RIGHT NOW! No tricks or games. Just read some
TESTIMONIALS, to guage my skills and services and why clients who find me --
keep me for decades!
am M.D. Anderson, a nationally known and published inherited IRA financial
consultant in Chandler, Arizona. My firm, Financial Strategies, Inc., first
incorporated in 1990, does Inherited IRA
consulting and estate related tax consulting for clients in Arizona as well as
throughout the United States. (And for U.S. citizens living in foreign
This is my 38th year of providing multiple
financial services to my clientele.
Now, after all these years
of practice, lawyers and CPA's request my help to assist them not just for their
clients, but many times for their own personal family or parent
IRA situations. I thank all professional advisors who trust me to assist
them. But especially, I thank
those who give me the priviledge to assist with their own parents or other
People who meet with me live or via
SKYPE or FACETIME, hire me on the spot when a serious IRA problem exists. I've been called
"saver of money", "financial angel", even "an answer to prayer" over the years in my client
work. (I am sure my IRA clients' former advisors
names for me would not be publishable without
Believe me, I am none of that -- just a smart guy who knows
more than your current advisors about Inherited and Self-Directed IRAs, and how
they relate to estates, living trusts and how they work under the tax code. You should know I am
with some of America's top legal and tax advisors -- also experts and well versed
on Inherited IRAs, Taxation and Estates & Trusts.
Some of those advisors provide the
books and guidelines that all of us inherited IRA advisors must use in our
advisory practice. Being quoted in the same national news articles with pros
like attorney Natalie B. Choate and CPA Ed Slott the past few years is truly a
highlight in my long financial consulting practice. It is also your
assurance that you have found the "worker" to fix your IRA problem.
I am the one that follows the top inherited IRA and retirement experts in the U.S. and apply their truths
on one Inherited IRA case after another each year - since 1998!
Businesss is good, meaning America's advisors continue unabated in malpracticing "big
time" on client accounts before they die -- leaving beneficiaries few
options they like -- until they contact me!
With my resources and experience, I
can take on the largest IRA cases out there now and in almost every case,
money from instant or short term taxation.
(Noting that first... we rescue
you from bad advice)
Time to Toot Our Own Horn
Inherited or Self- Directed IRA National Media Mentions
"Trusts as IRA Beneficiaries!"
Trusts & Estates Prof Blog
"Naming a trust as your IRA
"Self-directed IRAs & real estate",
Life Health Pro Part 1
"Self-directed IRAs & real estate",
Life Health Pro Part 2
"Avoiding Letting Clients End Up In
Trusts & Estates Prof Blog
Our Mention in Attorney Natalie B.
Choate's Newletter May 2012
(She likes the fact we publish "horror
stories" of victimized beneficiaries, so the public can be warned)
"Inherited IRAs: a Sweet Deal"
"A Hellacious Inherited IRA Story"
"Eight Pitfalls to Avoid With an
Fox Business News
"8 ways to go wrong with an
Stays Busy Practicing in 5
Separate Financial Disciplines:
Estate Tax preparation and
Inherited IRA consulting. (Most States)
document preparation (Arizona) and
paralegal to an International law firm.
licensed Realtor and IRA/Estate & Trust owned homes consultant inTempe, Arizona.
4. Insurance Brokerage Firm:
Life-health-annuity insurance sales and consulting in
Arizona and Iowa, and other states from time to time.
consulting and sales of investment real estate (Arizona and by
referral nationwide), precious metals in coins and bullion
It's true. My current occupations along with being a former
Mortgage Officer and Securities and Registered Investment
Advisor Representative, gives me a
360 view that few advisors
can give in your situation. (and
causes about 60+ hours of
continued education school to attend each year)
Warning: The Government wants to take over your IRA...
Inherited IRA Tax News?
Read All 2014
- 2012 IRA Updates Now!
Latest News: The 2015 budget and now Congress wants to force
your Inherited IRA into a 5 year taxation scenario!
Professional help available right now to avoid needless taxation of your Inherited IRA
"I have helped save my clients countless millions of dollars from needless
taxation due to bad advisors and bad advice on inherited IRA
M.D. Anderson, AZCLDP, Accountant, Realtor
To date, since starting my Inherited IRA
consulting division way
back in 1998 --
I have helped save my clients countless millions of dollars from
needless taxation due to bad advisors and bad advice on
inherited IRA accounts.
Sadly, the bad advisors were many times formerly admired and
trusted by your deceased
parent or loved one. Your guard can easily be down if a large
account is left to you and you are given advice by some of these
folks who mean well -- but don't really have a clue just how
difficult it is to discern the proper steps to preserve IRA
money after death so it doesn't get instantly taxed. Or, taxed
on a much faster schedule due to mistakes, misdeeds, or advisory
malpractice that frankly, I see on every inherited IRA case I work on now.
Whatever you do, avoid these mistakes on your
THESE ARE SOME OF THE BIGGEST MISTAKES I SEE ON INHERITED IRA
First, many financial advisors will tell you lump sum taxation is necessary
upon the death of an IRA owner,
when in fact -- most times it is not. But the human element of
grieving, or just the stress of estate management can leave
vulnerable. You may not know the right questions to ask before
signing paperwork that is not in your best interest. That
inherited IRA paperwork, which is most often "wrong" when first sent out, can tax the
Second, custodians sometimes tell large IRA
beneficiaries that they will need to just stay on the same
Required Minimum Distribution (RMD) schedule with their
inherited IRA, as the now deceased IRA owner was on. That makes for a real easy succession of keeping the money under
management or "in house". But, in almost
every case, it isn't true!
That means instead of resetting mortality "age" to YOUR
birth date - if you are younger, you will have to draw money out
and tax it faster than what the IRS requires.
Believe it or not, we find numerous cases where the death
benefit hasn't been paid and the inherited IRA client had died years
before. A recent case was with a west coast client on retainer
with our firm. Seems Metropolitan Life's best job of consulting
after the father in this case died was to tell the sole
beneficiary of the inherited IRA that he had five (5) years to
start drawing money. This is complete
malpractice as ANY good inherited IRA consultant knows once
RMD's start - the five year rule dies too and is never
Thirdly, you have to get a handle on the currently allowed
concept of stretching an inherited IRA out as far as possible. RMD's run
2-6% depending on the beneficiaries age when an Inherited IRA is
created. Now, as long as you can earn more than that each year,
there is no depletion but instead - increases in the capital
values of the account. So, if you are married, you can stretch
out payments for your lifetime. Then, your spouse if he or she
survives can draw out payments for their lifetime by doing a
spousal rollover, thus never creating the "inherited IRA"
registration which means you can add years to the stretch period
by doing a spousal rollover.
Then upon your spouse's demise, your children
can draw out payments for their lifetime. Even your grandkids can continue a
parents payout in a properly set up Stretch IRA account.
Keeping your Inherited
IRA going for generations makes a lot of sense! Don't
count on getting it set up properly from your current advisors or your parent's former
advisors. After all these years, the odds are not in your
(Hey, you found me so things are looking up for you!)
Lastly, my specialty of inherited
IRA consulting is an area few can get right -- but especially if an IRA is
left to a trust. Fixing trust situations that are listed
as the primary beneficiary of large
accounts (or by default, end up as named
beneficiary) is where I really shine. When a trust is listed
-- things can go wrong --
fast. Assuming it is an IRS "qualified" trust,
you won't be able to
use your own age...unless you are the only beneficiary.
You see, multiple sub-trusts are required in the actual instrument to leave IRA
money "per beneficiary", otherwise
ALL Required Minimum Distributions (RMD's) will be based on the
age of the "oldest"
beneficiary listed. (Pray it's not your 85 year old Uncle...)
Knowing how to deal with an inherited
IRA payable to a living trust (conduit or otherwise) requires
professional help. You have about a 1% chance to get it right without
Please, don't even try without first giving me a ring or e-mail to let me know
The trust needs to be a "conduit" trust to be
most effective as a recipient of IRA death claim proceeds. And,
it must be deemed "see through" by passing 4 distinct IRS
rules -- all to reset the age basis for those IRS required
withdrawals you must start taking the year after the year of the
death. Many trusts reviewed after death, (post mortem), are
found (sometimes too late) to not be
set up properly. Therefore, the hoped for
desired by the Inherited IRA owner is easily lost in real practice.
Inherited IRA's payable to a trust on larger accounts is the
norm from most legal advisors and trust creators. Getting it right with the correct
wording, well that's another story. You can read more about some client
cases with faulty trusts in our Wall
of Shame website page!
This recent inherited IRA case shows the cost of delay:
Millions of future "stretch" values...
example of bad misfortune happened this past summer, 2012. The client
retained me as his Inherited IRA consultant late in 2011 after
his mother passed away. Due to a grueling work schedule, the
client delayed the decision making process on a substantial
Inherited IRA account left to him. Initially, the trusted
insurance agent holding the funds reported the account
beneficiary was her living trust. He was wrong...
Sadly, the 9 month disclaimer period
expired from the date of death and when I demanded copies of the
last recorded beneficiary form, the client got the phone call
you DON'T WANT! It was too late to disclaim a bad beneficiary
designation on this inherited IRA annuity. A
half million dollar IRA annuity was forced to be payable to the estate!
No, it's not exactly
Inherited IRA Hell, but it isn't Heaven either. The 43 year
stretch got skinned down to 13.1 years, the money had to go through a
west coast state probate process and the legal fees alone got "high" on a
needless probate caused by a financial advisor's failure it appears to send in a
signed beneficiary form naming her trust as the primary beneficiary. The agent is guilty of a malpractice event for
giving false information that was trusted and relied on.
And, the Inherited IRA stretch or super-stretch projections are no longer
But, the story isn't
over. The living trust was the contingent beneficiary. A
beneficiary form assumed signed by the mother before her death
appears to have never been recorded that would have named
her living trust as primary beneficiary. The trust "Schedule A"
asset sheets notes a check off mark telling us it was most likely signed
and given to the agent.
The trust would have qualified as a "See Through" trust per IRS rules.
Now, for your legal
experts, the plot thickens. Every good trust portfolio has
a "Pour Over" Will. And, of course EVERY asset left to the
estate or found in the estate at death needs to be retitled as a
trust asset after death per the P.O.W declarations by the
Testator/Trix. Since the admittance of that Pour Over
Will in the western state probate court has now taken place,
this beat up and bruised Inherited IRA has to be stuck back into
the Living Trust for the duration of the 13.1 years of RMD
payments! Questions to whether this is possible or that the
funds can be stretched at all are yet to be determined.
Keeping a trust open
for years, just so it can pay out Inherited IRA RMD's to a very
astute son as the sole heir was another mistake and one I
clearly stated when interviewed for an April 14th, 2012
Wall Street Journal article:
(Inherited IRAs: a Sweet Deal)
Lawyers please think
through what you draft when you so easily suggest a large IRA
be left to a trust. And consider the consequence of a large IRA left to an
estate and how the Pour Over Will by law, forces it into the trust after death. Most of these
estate plans I
see after death are full of Trouble with a capital T!
So, yes, in my west coast example, to
conclude, the large
Inherited IRA funds may yet find their way to the trust since the court supervised probate
has recently ended. And because of the
"gauntlet" they have to travel through, there is a chance the funds will
get taxed after probate as the case is compounded by
circumstance rarely found in my Inherited IRA consulting work.
Suffice it to say that the mother's intentions are no longer possible and
problems caused by bad advisors has and will cost greatly for
this client before it all ends.
Read More About Bad Advisors At:
ACCOUNTS GONE WILD
I've had too many calls
from heirs already in Inherited IRA HELL!
Seek Counsel at the Outset
An inherited IRA article I was interviewed in, that published
in 2012 on
"Eight Pitfalls to Avoid With an Inherited
correctly quoted what you must understand at the onset --
"Seek Counsel at the Outset". No better advice could have
been spoken by reporter Sheyna Steiner. Especially if you are an
owner or beneficiary of a larger Inherited IRA account that you would like
to stretch the years out as far as possible before the bulk of
the money actually gets taxed.
Some of my past clients have penned that the "M.D." in
my name stands for "M.D. Hammer". I always maintain a professional
attitude but occasionally I have to "get tough" for a client's
behalf, while serving their best interests in the Inherited IRA
arena. One thing is for sure... I never back down when large
financial firms try to intimidate me. (I have never lost an
argument since they are always wrong and they eventually always
back down or yield)
How To Retain Me
My firm's minimum starter retainer fee to engage
inherited IRA consulting services bills at our firm's 2014 billing rate of $ 180 per hour. Starting retainer
fees start at a minimum
of 1.5 hours or $ 270 due at inception. Electronic debit/credit payments or
paper checks are accepted. (Ask for more details when you
or E-mail or call me toll free at
1-800-782-2806) If living outside of the United
States, please Skype with me, using my Skype account name of
Once retained, I briefely discuss circumstances with your current legal and
accounting advisors if it can help the situation. Occasionally, one or both
are the "cause" of the problems I am retained for and in that case, discussion
is not normally recommended other than to request any missing documents or
records that are allowed by law when an advisor is replaced.
Most likely, it is your FINANCIAL INVESTMENT ADVISOR who has caused your
specific problem, and we do not normally communicate with them.
(Just those who supervise them)
YES, I HELP YOU FIRE YOUR PAST ADVISORS!
I can also
assist in discussing problem areas BEFORE death, so the big mistakes I am
normally hired on post mortem can be avoided and eliminated. As a
professional tax consultant and financial advisor, I can't say it any more plainly --
FIX IT BEFORE IT BREAKS! This in turn, can
protect you as well as your current
advisors. I can intervene before death occurs and help them
malpractice. By employing my prevention consulting services before you die,
proper education and guidance will guarantee NO ONE ends up in our
we talk about in this website.
(That is as long as you don't let another bad advisor mess it up again...)
If you are reading this after losing a loved one, you have my profound sympathies.
I fully understand just
how devastating and overwhelming the estate settlement process
can be, especially when placed on top of the grieving process. If you are
also an inherited IRA beneficiary, I understand that "deer in the headlights"
feeling you may now have. So, I suggest you get some
professional help. I have over 38 years of combined tax,
investment, mortgage banking, legal and real estate experience in my professional
practice. I have clients nationwide as well ex-patriots in foreign
Frankly, my advisory to fix a problem you
now have, or to fix it before it becomes a problem will cost just a fraction --
as to what the true and total cost of a needless big tax or legal mistake could
cost you in the long run.
Especially if things go horribly wrong.
Keep that in mind when you seriously
consider who your ally is going to be in the journey to keep
your newly inherited IRA funds away from immediate taxation from
No matter how scared you may be right now,
while reading this website -- few clients of our firm end up in that "hell" we
talk about. A minimum retainer can help you find out what your current
status is. It's a steal, especially if my tax review reports you have options
for stretch IRA potential of inherited funds. But, you need to hire the right
person to get the right results.
The example below shows just how easy you
can be in "hell" if you don't know how to play the inherited IRA game:
A HELLISH EXAMPLE: If you are attempting a
self-directed IRA with
your inherited IRA money, did
anyone yet explain how a simple mistake not caught in the same year it
happened -- could cost you a
from the IRS? (The custodian legally is charged the penalty, but
every custodian is held harmless when you employ them, so the
wrong person/company/plan could take your entire IRA!)
Delaying discovering the mistake in this example could cost
100% of your self directed IRA! Now, that would be hell wouldn't it?
In closing, If you are looking for
intelligence and experience,
at a reasonable fee structure, hire me!
Optional Legal Consulting Also Available
For cases that you feel a legal consultant may also be required, my
legal associate, Dr. Saul S. Gefter*,
a well known former U.S. Diplomat and current International juridical consultant
and lawyer, is
available as well. Saul can be retained separately with me (M.D.) at a reduced fee
He has assisted on many cases for our firm over the years
when circumstances require legal jurisprudence before options (specific steps to
assist you) are created and then implimented.
Putting a savvy and seasoned legal consultant on your case, guarantees ALL
the legal options you have now will be explored and provided to you along with
my tax advisory.
Call me direct at
1-800-782-2806 for more details, if you would like
to retain both of us for your sitution at the onset. (Highly
recommended on large IRA cases)
* Member, U.S. District of Columbia State Bar
Time May Be of The Essence To Fix Your Inherited IRA
(M.D. Anderson) right now:
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Good Bye for now!
M.D. Anderson, President
Financial Strategies, Inc.
Graphic Below to Read
UPDATE ON IRS ALLOWED ROTH
No, you can't convert your
Inherited IRA into a Roth under current tax law. But, for all
other traditional IRA funds, tax options on your 2012 Roth conversions
are still available to "keep" or "revert". DISCOVER why 2013
may still be a good year to convert your IRA to a Roth IRA before tax rates go up
more and allowed deductions go down