|
IRAs and qualified plans are an exceptional way to accumulate
money for a secure retirement! However, at some point, you
will have to pay taxes. In fact, at 70 ½ if you do
not start taking your required minimum distributions, you
will be accessed a 50% penalty on the amount you should have
taken!
Even more expensive is if you pass these plans to your heirs
incorrectly.
For example: Assume John was 85 years old when he passed
away leaving his 65 year old son Robert his IRA account worth
$486,492 earning 5.00%.
If Robert decides to take a lump sum distribution from John's
IRA, there are two problems:
- Lost money due to taxes (In a 35% tax bracket, Robert
is left with only $316,220, a loss of $170,272.)
Robert receives a large amount of money all at one time.
- Wouldn't it be better to maximize this distribution?
The Solution… Use a Stretch IRA which
would stretch payments over Robert's life expectancy.
Based on Robert's life expectancy, the remaining payments
would amount to $880,727! That's an additional $394,235
over and above the original $486,492!
If you own an IRA/Qualified Plan, we can show you how to
create a legacy for generations by using a Stretch IRA! Your
heirs will pay fewer taxes, receive a much larger amount of
money, and not receive so much money all at one time!
If you have any questions about stretching your IRA/Qualified
Plan, I invite you to call me for a personal specific quote.
I would greatly appreciate the opportunity to discuss your
concerns and share my strategies and solutions with you.
|
…"You
provided us with sound advice, sharing your knowledge and
handling our request with professionalism and care. It seems
to be a rarity to find someone that provides this kind of
service…"
Mr. & Mrs. Jones
Mesa, Arizona
|
