Do you want to squeeze the most money possible from your IRA or 401(k)? Imagine if you could double, triple or even quadrouple your savings for the benefit of your heirs? Do you think they could use a financial safety-net in these difficult times?

 

What is an IRA Inheritance Trust?!

 

The only tool that achieves the two most important goals of retirement planning: 1. Wealth Building (tax deferral, compounding interest and gains and stretching-out the distributions as long as possible to build more wealth); and 2. Asset Protection--ensuring that what you leave your heirs is not lost to divorce, lawsuits, creditors, in-laws, nursing homes and gold diggers).

 

IRS rules have changed! Now heirs can "stretch" out IRA distributions over their life expectancies—generating substantial wealth even from what you might think is a modest IRA!

 

Many IRA owners and their professional advisors "assume" that IRA beneficiaries will make the right "stretch-out" decisions or seek the advisor's help before taking withdrawals. Unfortunately, that's often not the case!

 

More likely, your beneficiaries race to the bank as fast as they can to cash out the IRA earlier than required, completely blowing the "stretch-out!" This happens because beneficiaries are:

• Not aware of the complicated distribution rules and their choices.
• See themselves listed as beneficiaries on an account and immediately transfer it into their own names.
• Go to the custodian asking what to do, are given a check and then/ immediately cash and deposit it in their own accounts.
• Do what they think (wrongly) is a tax-free rollover to their own IRAs.
• Can't wait to get their hands on the money or are influenced by a spouse to spend it!

Yanking the IRA money out too quickly may force a family to pay all the taxes up front and lose between one-third to one half of the IRA's future value - - literally throwing away hundreds of thousands of dollars, or even millions!

 

 

Assume the IRA beneficiary contacts the right advisor, completes the right paperwork and does so all within the tight time-frames required by the IRS, to "stretch-out" and pay the taxes gradually over her lifetime. A LOT can still go wrong.

 

When a beneficiary receives an inheritance directly, as is the case when an
individual is named directly as the beneficiary of an IRA, the inheritance can be exposed to a number of costly threats:

• The wrong people may inherit the IRA (your child could name her spouse as next beneficiary and that spouse's next wife or that spouse's children of another marriage could inherit the account!)
• The beneficiary, the spouse or children may have poor spending habits (be "spendthrifts"!).
• The beneficiary may lack good money management skills.
• A beneficiary's spouse may take some or all of the IRA in a DIVORCE! (The income tax laws, allowing an IRA transfer in a divorce to be tax-free, actually encourage the ex-spouse to grab it!
• If the beneficiary is too young, elderly or disabled, she won't be able to manage her own affairs - - without unwanted Court intervention.
• A beneficiary who now or later in life receives needs-based government benefits (like Medicaid or SSI) may lose those benefits.
• In most states an IRA is not creditor protected and can be grabbed in a LAWSUIT, even a bogus one that forces a beneficiary to settle.

 

The bottom line—an inherited IRA NEEDS both "stretch-out" AND Asset Protection - - the kind that only one trust can provide, the new IRA Inheritence Trust.

 

If The IRA Inheritance Trust is so Great, Why Hasn't My Financial Advisor Heard About It?

 

The use of a trust as a beneficiary for retirement plan assets is not new. But the use of THIS trust as a beneficiary IS new. The IRS rules and rulings have changed over the past 5 years such that this trust is now possible. Further, many financial advisors or CPAs are not specialists in the complex distributions rules associated with IRAs and 401(k)s. This trust has received IRS approval. So, if anyone tells you it can't be done, tell them to call me right away and I'll be happy to show them the IRS guidance.

 

 

For anyone with IRAs (including those owned by his or her spouse) and/or 401(k) or other retirement plans that total over $200,000 - - this IRA Inheritance Trust is virtually a "no brainer" decision.

 

Schedule your FREE Consultation below or CALL 508-340-3134 today or if in Western MA, CALL 413-588-8298