The stretch IRA permits a beneficiary to receive a payout from an IRA over their life expectancy. This option allows the opportunity for the IRA to increase in value while the beneficiary takes minimal mandatory distributions. For example, if an IRA owner dies, his 45-year-old son as beneficiary may take distributions from the account based upon his life expectancy. According to the IRA expert, Natalie Choate, the word is that “many Congress-people are convinced that eliminating the “stretch” IRA payout for retirement plan death benefits would simplify the Tax Code, balance the budget, and restore fairness all in one fell swoop.” (Natalie’s Notes, Vol. 17, No. 1. Summer 2016). The proposal would replace the stretch IRA with a mandatory 5-year payout. As usual, when Congress sees a potential solution for their fiscal mismanagement, watch your wallet.
A durable power of attorney – where an agent is appointed to handle the financial affairs for someone who can no longer make such decisions for themselves (known as a principal) – has been used for decades. Years ago, these documents were rarely ever challenged or exploited. Unfortunately with the rise of elder abuse, banks […]
While we all love to save money and time, your estate plan is not a good place to cut corners. DIY estate planners often use inexpensive will templates and generic online legal advice to draft an estate plan on the cheap. A new Wall Street Journal article, gives a few reasons to reconsider this strategy.
It is always sad to witness a senior’s ability to drive deteriorate. For many, driving is strongly correlated with independence. While it is essential to keep your loved one and other drivers safe, there are some ways to keep aging loved ones on the road longer. In addition to driving classes, here are a few […]