(continued from Home page)
You may save taxes and enhance income – if you:
• Carefully consider whether your rollover of retirement plan funds to an IRA should
include your previous contributions to the plan. (Section 2:1.2 of the Guide discusses
the considerations.)
• Carefully consider whether to roll over your employer’s stocks and bonds to an IRA.
(Section 2:1.3 of the Guide discusses the factors to consider.)
• Elect the most favorable method for computing the tax on a lump sum distribution from
your retirement plan – if you were born before January 1, 1936. (Section 3:21 of the
Guide explains the alternative computations.)
• Defer income (or accelerate deductions) between tax years to qualify for a Roth IRA
conversion. (Section 2:2.1 of the Guide.)
• Choose the distribution methods and distribution periods for your retirement, IRA, and
annuity benefits that maximize the deferral of your taxes. (Sections 2:2.2 and 2:3 of the
Guide, and Chapter 9 generally, explain the choices – and factors to consider.)
• Take the first required minimum distribution from your retirement plan or IRA in the tax
year generating the lowest tax. (Section 2:2.2 of the Guide.)
• Structure distributions from your retirement plans or IRAs to avoid the penalty tax on
premature distributions. (Sections 2:1.3, 3:1, 6:2, and 7:4 of the Guide.)
• Elect the most favorable method for computing the tax on lump sum payments of prior
year social security benefits. (Section 16:5 of the Guide.)
• Determine the percentage of disability insurance premiums you paid – to maximize the
nontaxable portion of your disability benefits. (Section 12:1.3 of the Guide.)
• Qualify for nontaxable VA disability benefits to replace taxable U.S. Military retired pay.
(Section 13:2 of the Guide.)
• Preserve your surviving spouse’s right to elect to own your IRA or Roth IRA. (Sections
2:3.1b, 6:6, and 7:7 of the Guide.)
• Preserve the right of your beneficiaries to choose between alternative methods of
distribution of your retirement and IRA benefits. (Sections 2:3 and 9:3.2 of the Guide.)
• Establish separate IRA accounts for your beneficiaries to maximize their tax deferrals.
(Sections 2:3.3 and 9:5 of the Guide.)
• Designate a trust as the beneficiary of your retirement or IRA benefits to provide better
control of funds. (Sections 2:3.4 and 9:3.2c of the Guide).
• Advise your spouse or other beneficiary to consider whether to transfer your regular IRA
or retirement plan assets to a Roth IRA after your death. (Section 7:1.6 of the Guide.)
• Devise an estate plan that reduces or eliminates federal estate taxes on your
retirement or IRA benefits. (Chapter 19 of the Guide.)
• Make a charitable beneficiary designation that will eliminate taxes on retirement or IRA
benefits. (Section 2:3.6 of the Guide.)
• Use multiple trusts as IRA beneficiaries to maximize tax deferral. (Sections 9:3.2c and 9:5
of the Guide.)
To Home page
You may save taxes and enhance income – if you:
• Carefully consider whether your rollover of retirement plan funds to an IRA should
include your previous contributions to the plan. (Section 2:1.2 of the Guide discusses
the considerations.)
• Carefully consider whether to roll over your employer’s stocks and bonds to an IRA.
(Section 2:1.3 of the Guide discusses the factors to consider.)
• Elect the most favorable method for computing the tax on a lump sum distribution from
your retirement plan – if you were born before January 1, 1936. (Section 3:21 of the
Guide explains the alternative computations.)
• Defer income (or accelerate deductions) between tax years to qualify for a Roth IRA
conversion. (Section 2:2.1 of the Guide.)
• Choose the distribution methods and distribution periods for your retirement, IRA, and
annuity benefits that maximize the deferral of your taxes. (Sections 2:2.2 and 2:3 of the
Guide, and Chapter 9 generally, explain the choices – and factors to consider.)
• Take the first required minimum distribution from your retirement plan or IRA in the tax
year generating the lowest tax. (Section 2:2.2 of the Guide.)
• Structure distributions from your retirement plans or IRAs to avoid the penalty tax on
premature distributions. (Sections 2:1.3, 3:1, 6:2, and 7:4 of the Guide.)
• Elect the most favorable method for computing the tax on lump sum payments of prior
year social security benefits. (Section 16:5 of the Guide.)
• Determine the percentage of disability insurance premiums you paid – to maximize the
nontaxable portion of your disability benefits. (Section 12:1.3 of the Guide.)
• Qualify for nontaxable VA disability benefits to replace taxable U.S. Military retired pay.
(Section 13:2 of the Guide.)
• Preserve your surviving spouse’s right to elect to own your IRA or Roth IRA. (Sections
2:3.1b, 6:6, and 7:7 of the Guide.)
• Preserve the right of your beneficiaries to choose between alternative methods of
distribution of your retirement and IRA benefits. (Sections 2:3 and 9:3.2 of the Guide.)
• Establish separate IRA accounts for your beneficiaries to maximize their tax deferrals.
(Sections 2:3.3 and 9:5 of the Guide.)
• Designate a trust as the beneficiary of your retirement or IRA benefits to provide better
control of funds. (Sections 2:3.4 and 9:3.2c of the Guide).
• Advise your spouse or other beneficiary to consider whether to transfer your regular IRA
or retirement plan assets to a Roth IRA after your death. (Section 7:1.6 of the Guide.)
• Devise an estate plan that reduces or eliminates federal estate taxes on your
retirement or IRA benefits. (Chapter 19 of the Guide.)
• Make a charitable beneficiary designation that will eliminate taxes on retirement or IRA
benefits. (Section 2:3.6 of the Guide.)
• Use multiple trusts as IRA beneficiaries to maximize tax deferral. (Sections 9:3.2c and 9:5
of the Guide.)
To Home page
| Copyright © 2005-2008 by Vorris J. Blankenship All Rights Reserved |
The author intends that this website provide accurate and authoritative information on the subject matter
covered. However, the information provided on this website is not a substitute for the advice of an attorney,
accountant, or other professional; and the author is not offering legal, accounting, or other professional
advice. The material presented on this website is not intended for use, and may not be used, to avoid tax
penalties. If you need legal advice or other professional help, you should seek (from an independent
attorney, accountant, or other competent professional) advice based on your own particular circumstances.
covered. However, the information provided on this website is not a substitute for the advice of an attorney,
accountant, or other professional; and the author is not offering legal, accounting, or other professional
advice. The material presented on this website is not intended for use, and may not be used, to avoid tax
penalties. If you need legal advice or other professional help, you should seek (from an independent
attorney, accountant, or other competent professional) advice based on your own particular circumstances.
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