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.
78% of Americans under the age of 36 do not have a will or a trust in place. Frankly, most millennials show little interest in estate planning. This can create quite the mess if you are ever (God forbid) involved in a tragic accident. As discussed in a Wealth Management article, planning your estate is […]
Estate planning can become complicated quickly if you are remarried. Here are a few things to consider, from Forbes. Your accounts. Oftentimes, one may choose to keep their accounts separate when remarried while having some joint accounts for groceries, utilities, etc. This can be a good thing, as separate accounts can limit the risk of […]
The cost estimating website “Howmuch” has released estimates for the cost of long term care in each state. The report examines costs for adult day care, home health aides, assisted living and nursing home care. Michigan while expensive, is fortunately is not at the top of the list for any category. For a month in […]