(continued from Home page)
A retiree may save taxes and thus enhance income by:
• Carefully considering whether a rollover of retirement plan funds to an IRA should
include employee contributions to the plan. (Section 1.01[3][e] of the treatise discusses
the considerations.)
• Carefully considering whether to roll over employer stocks and bonds to an IRA.
(Section 1.01[3][f] of the treatise discusses the factors to consider.)
• Electing the most favorable method for computing the tax on a lump sum distribution from
his or her retirement plan – if he or she was born before January 1, 1936. (Section 2.24 of
the treatise explains the alternative computations.)
• Choosing the distribution methods and distribution periods for retirement, IRA, and
annuity benefits that maximize the deferral of taxes. (Section 1.02[2] of the treatise, and
Chapter 8 generally, explain the choices – and factors to consider.)
• Taking the first required minimum distribution from his or her retirement plan or IRA in the
tax year generating the lowest tax. (Section 1.02[2][c] of the treatise.)
• Structuring distributions from retirement plans or IRAs to avoid the penalty tax on
premature distributions. (Sections 1.01[4], 2.04[2], 5.04, and 6.04 of the treatise.)
• Electing the most favorable method for computing the tax on lump sum payments of prior
year social security benefits. (Section 17.06 of the treatise.)
• Determining the percentage of disability insurance premiums he or she paid – to
maximize the nontaxable portion of disability benefits. (Section 13.02[4] of the treatise.)
• Qualifying for nontaxable VA disability benefits to replace taxable U.S. military retired pay.
(Section 14.03[3] of the treatise.)
• Preserving the right of his or her surviving spouse to elect to own the retiree's IRA or Roth
IRA. (Sections 1.03[2][c], 5.08, and 6.07 of the treatise.)
• Preserving the right of beneficiaries to choose between alternative methods of
distribution of retirement and IRA benefits. (Sections 1.03 and 8.04[2] of the treatise.)
• Establishing separate IRA accounts for beneficiaries to maximize their tax deferrals.
(Sections 1.03[4] and 8.06[3] of the treatise.)
• Designating a trust as the beneficiary of retirement or IRA benefits to provide better
control of funds. (Sections 1.03[5] and 8.04[2][d] of the treatise).
• Advising his or her spouse or other beneficiary to consider whether to transfer regular
IRA or retirement plan assets to a Roth IRA after the retiree's death. (Section 6.02[2][e] of
the treatise.)
• Devising an estate plan that reduces or eliminates federal estate taxes on
retirement or IRA benefits. (Chapter 20 of the treatise.)
• Making a charitable beneficiary designation that will eliminate taxes on retirement or IRA
benefits. (Section 1.03[7] of the treatise.)
• Using multiple trusts as IRA beneficiaries to maximize tax deferral. (Sections 8.04[2][d]
and 8.06[4] of the treatise.)
(See the treatise for many more such planning ideas.)
To Home page
A retiree may save taxes and thus enhance income by:
• Carefully considering whether a rollover of retirement plan funds to an IRA should
include employee contributions to the plan. (Section 1.01[3][e] of the treatise discusses
the considerations.)
• Carefully considering whether to roll over employer stocks and bonds to an IRA.
(Section 1.01[3][f] of the treatise discusses the factors to consider.)
• Electing the most favorable method for computing the tax on a lump sum distribution from
his or her retirement plan – if he or she was born before January 1, 1936. (Section 2.24 of
the treatise explains the alternative computations.)
• Choosing the distribution methods and distribution periods for retirement, IRA, and
annuity benefits that maximize the deferral of taxes. (Section 1.02[2] of the treatise, and
Chapter 8 generally, explain the choices – and factors to consider.)
• Taking the first required minimum distribution from his or her retirement plan or IRA in the
tax year generating the lowest tax. (Section 1.02[2][c] of the treatise.)
• Structuring distributions from retirement plans or IRAs to avoid the penalty tax on
premature distributions. (Sections 1.01[4], 2.04[2], 5.04, and 6.04 of the treatise.)
• Electing the most favorable method for computing the tax on lump sum payments of prior
year social security benefits. (Section 17.06 of the treatise.)
• Determining the percentage of disability insurance premiums he or she paid – to
maximize the nontaxable portion of disability benefits. (Section 13.02[4] of the treatise.)
• Qualifying for nontaxable VA disability benefits to replace taxable U.S. military retired pay.
(Section 14.03[3] of the treatise.)
• Preserving the right of his or her surviving spouse to elect to own the retiree's IRA or Roth
IRA. (Sections 1.03[2][c], 5.08, and 6.07 of the treatise.)
• Preserving the right of beneficiaries to choose between alternative methods of
distribution of retirement and IRA benefits. (Sections 1.03 and 8.04[2] of the treatise.)
• Establishing separate IRA accounts for beneficiaries to maximize their tax deferrals.
(Sections 1.03[4] and 8.06[3] of the treatise.)
• Designating a trust as the beneficiary of retirement or IRA benefits to provide better
control of funds. (Sections 1.03[5] and 8.04[2][d] of the treatise).
• Advising his or her spouse or other beneficiary to consider whether to transfer regular
IRA or retirement plan assets to a Roth IRA after the retiree's death. (Section 6.02[2][e] of
the treatise.)
• Devising an estate plan that reduces or eliminates federal estate taxes on
retirement or IRA benefits. (Chapter 20 of the treatise.)
• Making a charitable beneficiary designation that will eliminate taxes on retirement or IRA
benefits. (Section 1.03[7] of the treatise.)
• Using multiple trusts as IRA beneficiaries to maximize tax deferral. (Sections 8.04[2][d]
and 8.06[4] of the treatise.)
(See the treatise for many more such planning ideas.)
To Home page
| Copyright © 2005-2013 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.
Tax Planning Ideas
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |