Intelligent retirement planning is a must for serious minded individuals who really want to be able to enjoy their free time during their golden years. If you take action early on and exercise the discipline to stay within a cogent plan, you should be able to realize your retirement dreams and ambitions.
It is a good idea to look at financial planning from a holistic perspective. Most people would like to be able to leave something behind to their loved ones, so retirement planning and estate planning are inherently connected.
When you discuss the future with a good financial planning attorney, he or she will gain an understanding of what you would like to accomplish with regard to retirement and the subsequent legacy that you will be leaving behind. Ultimately you will walk out of the office with a holistic plan that leads to the fruition of your goals.
With the above having been stated, individual retirement accounts are a big part of many retirement plans. However, they can also play a role in your estate plan if there are resources remaining in the account at the time of your passing.
If you have a traditional individual retirement account, you must start taking distributions when you are 70.5 years of age. The minimum distributions are based on your life expectancy.
When you create the account, you can name a beneficiary who would assume ownership of the account upon your death if any remainder existed. This beneficiary can stretch the IRA by taking only the required minimum distribution that the IRS demands.
In this manner, the tax deferral afforded by the individual retirement account would be maximized.
This is a brief overview of how stretching an IRA can provide tax savings. To learn all the details, discuss the matter with a licensed and qualified financial planning attorney.
Latest posts by Litherland, Kennedy & Associates, APC, Attorneys at Law (see all)
- The Questions of Estate Planning, Part 2: What - December 5, 2019
- The Questions of Estate Planning, Part I: Who - November 25, 2019
- Litherland, Kennedy & Associates is Hosting a Coat Drive this Winter – Join Us! - November 18, 2019