Archive for August, 2008
Ira Required Minimum Distribution
August 21st, 2008
Question: When withdrawing money from traditional IRAs for Required Minimum Distribution, Can I use only one Traditiona?
for Required Minimum Distribution, Can I use only one traditional IRA instead of all several traditional IRAs? Thank you very much for answering the question.
Answer: Yes, you may withdraw the entire RMD from a single IRA. You will have to let the other financial institutions know that is your plan, and you probably will have to sign some sort of waiver releasing them from any responsibility for not taking the RMD from the individual accounts.
12) How bad are IRA RMD penalties?
Posted in IRA Distrubution Rules | 
Tags: 2009-required-minimum-distributions-changes, 457-plan, ira, ira required minimum distribution, ira required minimum distribution 2010, ira required minimum distribution age, ira required minimum distribution calculator, ira required minimum distribution worksheet, minimum, required | 
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Ira Rules Age
August 19th, 2008
Question: I have a question about IRA beneficiaries?
My daughter has been diagnosed with small-cell lung cancer and isn’t expected to live much more than a year. She wants to make sure all her finances are in the best possible condition for her teen-aged children who will be inheriting everything. I’m trying to help her with her roll-over IRA account, but the rules for multiple individual beneficiaries is very confusing to me. It would seem that the best thing to do would be to split the IRA into two accounts, each of which is left to one child. Am I understanding this correctly? Does anyone out there have experience with this situation?
Answer: There is no need to split the account. She can designate the beneficiaries to receive 50% and 50%. However, if the beneficiaries are minors, she may need to set up a trust so that the beneficiaries can handle their distributions in a prudent manner. (even though they are young, they will have to take distributions–albeit small ones– the year after she dies).
Under NO circumstances should she add their names to other accounts (like bank accounts). That is considered a gift, and taxes might have to be paid. She can put a “POD” designation on bank accounts, which means that it is immediately paid on death to the named beneficiaries. Any bank will do this. If she has securities, she can make the “TOD” which means they will transfer on death to the named beneficiaries.
My heart goes out to you and your family. You will be in my prayers.
IRA losco @ younger age