Held inside qualified retirement accounts
, QLACs function as income management tools that repurpose required minimum distributions so that the account holder, rather than taking RMDs in lump sum starting at age 70.
Plus it's never too early to think about next year's taxes: Get organized now, keep your receipts, and contribute to qualified retirement accounts
By virtue of these domestic relations law issues, judges issued rulings that attempted to balance the needs of the employees' former spouses and children with qualified retirement accounts
against the plain language of ERISA.
Believe their tax bracket will be the same or higher in retirement, or more specifically, when they draw income from their qualified retirement accounts
529 accounts as retirement accounts, thus gaining the tax benefits of qualified retirement accounts
while avoiding their restrictions (JCT, Technical Explanation of H.
35 trillion tax cut that was signed into law in the summer of 2001--which, due to budget rules, will expire in 2011-contained gradual individual tax rate reductions, gradual increases in maximum contributions to qualified retirement accounts
and a phase-out of the estate tax.
In addition, money in qualified retirement accounts
such as 401(k)s is not counted among assets.
FINRA found that Kazacos told customers in their 50s that, even though they had not reached the minimum age for taking withdrawals from their qualified retirement accounts
(59-and-a-half), they could begin taking systematic distributions from their accounts, without penalty, by relying upon Section 72(t) of the Internal Revenue Code.
Qualified retirement accounts
and the required minimum distributions from these accounts present advisors with unique tax challenges--and unique opportunities.
The source of portfolio withdrawals - whether from qualified retirement accounts
or after-tax brokerage accounts - can also often be controlled by clients, to take advantage of shifting tax rates.
Another reason to liquidate taxable assets first is particularly important if the taxpayer is under age 59 1/2; if qualified retirement accounts
are liquidated and one of the exceptions noted in Part I of this article is not available, the distribution could be subject to the normal ordinary income tax rate, and the Sec.
At the same time, the automatic rollover rules are intended to curb the high cash out rates for smaller balances and help American workers keep more of the dollars invested in qualified retirement accounts