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.
Protecting assets from nursing home expenses is an issue that I am frequently asked about. Sometimes it may arise after a heart attack, stroke or other concern. Other times it may arise after a loved one moves into an assisted living facility or nursing home due to Alzheimer’s. Whatever the motivation, it is topic that […]
Medicaid was originally designed to provide health insurance for disabled people. However, the Affordable Care Act (i.e. “Obamacare”) significantly expanded the program to include able-bodied adults. According to the current Medicare and Medicaid Services administrator, Seema Verma the expansion jeopardizes medical care for the “individuals the program was originally intended for.”
I’m often asked if I specialize in elder law. Not only do I answer “yes”, I typically try to explain the reason for my answer. While there are many attorneys who claim to be elder law attorneys, certainly not all specialize in it. I believe an attorney who claims to specialize in elder law should […]