LATEST 2012-2014 NATIONAL
-- HOT! HOT!
The 2015 Federal Budget Reveals...
"Same 'ol Samo!"
Basically, a "redo" applies to all the failed retirement plan
changes put in the 2014 budget, which failed to be implimented.
(Six out of seven anyway) The one that concerns our firm
the most is the restating of givng non spouse beneficiaries just
five (5) years to remove the money and pay the taxes on it.
Since we work with $50,000 - to over 2 million dollar Inherited
IRA account beneficiaries, this could become a drastic tax
burden on the heirs, especially when there is only one child or
is the best word to describe the intent behind these
proposals... M.D. Anderson "Cruelty"
Here or the Picture Above
to Get Ed Slott's Opinion (CPA and IRA Expert)
December 2, 2013
Wisconsin Cheese Money Showdown
Actually, it has nothing to do with cheese. But, that
may be all a family in Wisconsin may have left if the
Supreme Court rules against them when the case comes up
for review as soon as January 2014.
A previous circuit court was split on whether inherited
IRA's are or are not IRA's after you die. (IRA's are
commonly known as bankruptcy asset survivors you get to
keep) It may be the end for inherited
accounts to be protected in America from creditor reach.
When does an IRA not become an IRA, just because it was
inherited by someone else? Does an inherited home
become a car? An inherited bank account become a
mutual fund account? It is still under the same
IRS TAX rules folks... My Tax Opinion?
I hope they determine these precious IRA dollars can be
kept. 300k is a lot of money to rebuild a
Full Story Link:
READ MORE ABOUT IT
July 12, 2013
The Inherited IRA Battle Has Begun...
From Forbes Personal Fianance
Click Link Below To Read Article
(Note: It will take a lot of polish
to ever pass...)
Software Now Available!
Well, it had to happen sooner or later. Watching bad
advisors malpractice on IRA accounts for a decade and a
half has been difficult. Now, our firm has
provided a smart resource to aid legal advisors in
calculating the damage for their clients that have lost
the longer "stretch" payout from bad advisor advice.
Left now with either a lump sum distribution (already
performed), or a shorter payout period for large
inherited IRA account balances -- recovery calculations
should be performed on client accounts affected by the
Make no more excuses to your own law firm clients
complaining they got the short end of the stick from a
bad IRA advisor or firm. If the statute of limitations
has not expired -- you can help them
calculate the actual damages
and pursue a claim for recovery.
April 13, 2013
couldn't leave it alone. Now, they have proposed in the
2014 budget to force your inherited IRA into a maximum 5
year forced payout. Yes, grandfathering is
included for those being set up on current
deaths that take place prior to it becoming law.
BUT FEW KNOW IT IS ONLY FOR YOUR LIFETIME! Even
if your account gets grandfathered --
Your heirs get the same 5 year treatment in this
And of course, there is more bad news...
they also feel they can determine just how much money
you should be allowed to accumulate in your retirement
account (of any kind mind you). If it is more than
approximately 2.5 million -- this new proposal may shut
down your account for any amounts over that figure!
More from Wall Street Journal Article Published today:
A New Year and a New 401(k)
Government Program - Let's Make a Deal!
No end is in site for a workable plan that fixes the
current increasing US debt problem. This risks
everything we hold dear and true and frankly, it risks
the things we enjoy, the liberties and freedoms we
Drastic changes may be coming very soon.
The new law has a deal for
you. You can now convert your 401(k) plan at work (Also 403b's,
thrift savings and 457(b) plans too) to a ROTH
IRA and you don't have to sever your employment or
retire. Yes, you can right now, convert some or all of
your employer sponsored and send the money C/O U.S.
Many financial writers have already published reasons to
take the "deal" on the Roth conversion.
It's not for everyone. Letting your
traditional IRA just become an eventually taxable inherited IRA at your
death makes a lot of sense. Investing in real
estate as a "hard asset" also makes a lot of sense.
Keep your cash in your pocket -- you never know when you
may need it for.
Missed Your RMD for Last Year?
Well, they have another deal
for you. You can get out of trouble as long as you tell
your custodian to transfer the money to your favorite
charity. You've only got until January 31st, 2013,
to count for 2012 tax year.
There is big new news other than
continued attempts by our elected national officials to revive
former proposals that go back to 2008. None of this
proposed law is really necessary and some is
in nature to
say the least. We are watching closely expecting something to
"hit" most likely right after the election. Or if the government
gets desperate for operating capital - even before the election! confiscatory
June 28, 2012
National Health Care
So, we think CPA Ed Slott's review of just who gets to help pay for it is in order:
And, we also thank
Robert S. Keebler, CPA, MST for his timely sending out of his
"Understanding the Health Care Surtax Chart. Get your
June 22, 2012
IRS Now Putting Focus On IRA
The news is out --
the IRS has to report to the Treasury Department by October 15th
of this year. Treasury wants to know ways to raise revenues by
going after penalties and interest not currently being paid by
The IRS has
discovered they have been losing billions from collection
activities by faulty systems, bad advisors, or just unaware IRA
owners of when and what you can put into an IRA as well as take
out of an IRA account.
Though this information covers
ALL IRA's, the fact is that
are the worst for mistakes waiting to happen. Screw ups are
as you will find on this information website.
warning this month is real.
Don't ignore the reason why major publications and news articles
have all clearly stated that if you have recently inherited an
IRA account as a designated beneficiary, hiring an
expert is mandatory!
Read more about it
from this excellent article from Wall Street Journal reporter,
June 22, 2012/Print edition June 23, 2012, page B7)
Congress is trying to stop the "stretch-out" on
FUTURE Inherited IRA's!
stretch IRA may die at least for non spouse heirs.
Unless they are disabled. (all kinds of
qualified retirement plans eventually become eligible and are
known as an inherited or beneficiary IRA at death if not cashed
In other words, most
people would be barred from any long term stretch out of income
and tax deferral beyond 5 years in this new proposal. Though it
has been verbally stated the provision will be removed from the
pending transportation bill by the congressman that put it in
there in the first place, it still remains as part of one
of two proposals! (house and senate versions)
Baucus states it won't become effective January 1st, 2013 for decedent deaths
after that date.
However, as our graphic shows -- the end may not be far away. The
cat is out of the bag. The juicy billions of extra taxation
proposal could generate will not be easily forgotten. IF HIS WORD IS GOOD!
Just as it is slipped
on top of the back of a bill that really has nothing to do with
estate or financial planning, it will come back again I am
afraid. And, that is why you want to spend a little time
consulting with our firm to make sure you know how to get your
inherited accounts set up properly before any proposal like this
actually does become effective.
For the many we have
already helped, the good news is great news. YOU WILL BE
GRANDFATHERED! (well in at least the provision proposed that
they are pulling back out -- or are supposed to pull back out.)
be. Read our site content and then set an appointment to chat by
phone, in person, or by SKYPE. This is extremely important,
especially for those thinking of cashing in inherited accounts
before you understand the value of establishing an inherited IRA
while you still can. (You would then have the rest of your life
to cash it in or take RMD (required minimum distributions) or any
other amount you desire, while
protecting the balance from instant taxation) DON'T!!!