Roth IRA Distributions at Death: Pitfalls to Avoid

by

Robert D. Cavanaugh, CLU

One of the most attractive features of a Roth IRA is the ability to control the timing of the eventual required distributions. However, this ability mandates the withdrawals to be made within a prescribed set of rules.

The distribution advantages of a Roth IRA extend beyond the death of the IRA owner. But to make sure the spouse and children can benefit, things have to be set up properly. Here is a summary of the Roth IRA distribution rules at death.

Many people do not like the requirement that a traditional IRA must start required minimum distributions (RMDs) at age 70 1/2. Perhaps they don’t need the income yet. Maybe they would just as soon let the IRA continue to grow. In any event, the RMDs are taxable. Depending on the circumstances, they may even make part of Social Security retirement benefits taxable.

RMDs during the life of the Roth IRA owner are not required. If and when income is needed, withdrawals can be made, but there is no IRS requirement.

When the Roth IRA owner dies, RMDs must begin. When they are required to begin and how the distributions are received is a function of several factors.

Your Spouse is the Beneficiary

If your spouse is the sole beneficiary of your Roth IRA, your spouse can make an election to be treated as the owner of your Roth IRA. In this case, RMDs can further be postponed until the spouse’s death.

Note the word sole beneficiary, as this is an area where a mistake could inadvertently be made.

For example, let’s say you named your spouse and your children as beneficiaries. The spouse would be prohibited from making the ownership election and RMDs would be required over the life expectancy of the spouse, thus reducing (the spouse could die before their expectancy) or exhausting the Roth IRA balance altogether. So much for your desire to leave part to the children.

If the Roth IRA owner dies before age 70 1/2, the spouse doesn’t have to start the RMDs until the IRA owner would have reached age 70 1/2. Here is another area where the spouse needs to pay attention. If RMDs are not started when required (or less than the required amount is taken out), the penalty tax is a whopping 50% of the difference between what was required and what was withdrawn.

If your desire is to extend the RMDs all the way to the death of your spouse, here is another heads up. Let’s say you named a trust as the beneficiary of your Roth IRA. Even if your spouse is the sole beneficiary of the trust, the election to have the spouse treat your Roth IRA as their own cannot be made. There technically may be a work-around (a rollover), but why not just set things up right from the start?

A Person Other Than Your Spouse is the Beneficiary

In this case, distributions must be made over the remaining life expectancy of the beneficiary. If there is more than one beneficiary, the life expectancy of the oldest is used. If the beneficiary is a trust with multiple beneficiaries, the oldest beneficiary’s life expectancy is also used.

Another caution: If an entity other than an individual is a beneficiary of an IRA (even if an individual is also a beneficiary), the IRA is treated as having no beneficiary. The distribution requirements for an IRA with no beneficiary are outlined below.

Probably the most common scenario involving a non-person is a charity. If you name a charity as one of the beneficiaries, the distribution rules are different and may be contrary to your desires. The solution is to roll part of your IRA over to a new one and name the charity as the sole beneficiary.

No Beneficiary

Where no beneficiary is elected, the entire distribution must be made over five years. This five year rule would also apply even if there were a beneficiary and the distributions were not started when the rules dictated they must start.

As I hope you can see, there are several ways to make mistakes which would have the distributions occur in a much different manner than your wishes. These examples are my interpretation of the rules and cannot be relied upon for tax advice. I would recommend sitting down with your financial planner, your accountant and an estate planning attorney to make sure everything is set up properly.

Robert D. Cavanaugh, CLU is a 36 year financial and estate planning veteran and author of the free newsletter, The Estate Preservation Advisor. To subscribe and get the free video, How to Sell Your Life Insurance Policy for More Than the Cash Value, go to http://theestatepreservationadvisor.com/freevideo.htm

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Roth IRA Distributions at Death: Pitfalls to Avoid}

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On the campaign trail in the USA, October 2020

Monday, November 2, 2020

The following is the sixth and final edition of a monthly series chronicling the 2020 United States presidential election. It features original material compiled throughout the previous month after an overview of the month’s biggest stories.

This month’s spotlight on the campaign trail: the Free and Equal Elections Foundation holds two presidential debates, three candidates who did not participate in those debates give their final pleas to voters, and three political pundits give their predictions on the outcome of the election.

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US Supreme Court upholds ban on partial birth abortions

Wednesday, April 18, 2007

The Supreme Court of the United States on Wednesday April 18 has upheld the federal Partial-Birth Abortion Ban Act of 2003. The 5-4 vote reflected the change in vote count resulting from the retirement of Justice O’Connor and the confirmation of Chief Justice Roberts and Justice Alito.

The Intact dilation and extraction procedure, also known as partial birth abortion, involves removing an intact late-term fetus from the womb via the cervix. While it is a relatively rare operation – 0.17% of all abortions in the US in 2000, it has become a focal point in the abortion debate.

The Partial-Birth Abortion Ban Act bans the procedure in cases where the fetus is terminated during the operation, unless it is performed to to save the life of the mother.

Justice Kennedy wrote in the opinion of the court: “respondents have not demonstrated that the Act would be unconstitutional in a large fraction of relevant cases.” Further, he said, “Respondents have not demonstrated that the Act, as a facial matter, is void for vagueness, or that it imposes an undue burden on a woman’s right to abortion based on its overbreadth or lack of a health exception. For these reasons the judgments of the Courts of Appeals for the Eighth and Ninth Circuits are reversed.”

In a concurring opinion, Justice Thomas stated that he joins “the Court’s opinion because it accurately applies current jurisprudence, including Planned Parenthood of Southeastern Pa. v. Casey, 505 U. S. 833 (1992).”

In dissent Judge Ginsburg wrote: “Today’s decision is alarming. It refuses to take Casey and Stenberg seriously. It tolerates, indeed applauds, federal intervention to ban nationwide a procedure found necessary and proper in certain cases by the American College of Obstetricians and Gynecologists.”

Justice Kennedy’s words also recall the complicated issues of standing related to such cases. An issue in Roe v. Wade was the impossibility of any individual having standing in a court proceeding regarding abortion rights, since court proceedings take more than the 9 months of pregnancy, retiring any individual plaintiff’s standing before an appeals process can take place. The criterion of “a large fraction of relevant cases” may effectively deny standing to any plaintiffs who wish to litigate particular restrictions in some relevant future cases.

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Wikinews interviews Jo Jorgensen, U.S. Libertarian Party presidential nominee

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Wikinews interviews Jo Jorgensen, U.S. Libertarian Party presidential nominee
Author: Admin Posted under: Uncategorized

Thursday, October 29, 2020

Professor Jo Jorgensen of South Carolina, the U.S. Libertarian Party’s 2020 presidential nominee, answered some questions about her campaign from Wikinews accredited reporter William S. Saturn.

Jorgensen is a psychology professor at Clemson University.   In 1992, with the Libertarian Party’s backing, she ran for public office, seeking South Carolina’s 4th congressional seat in the United States House of Representatives. She finished the race in third place with almost 2.16 percent of the total vote. Four years later, the Libertarian Party tapped Jorgensen to be its vice presidential nominee. She joined a ticket with the late Harry Browne. Browne-Jorgensen appeared on every state ballot and received a total of 485,798 votes, which was roughly 0.5 percent. This marked the best performance for the party since 1980 and would not be topped percentage-wise until 2012 when former New Mexico governor Gary Johnson attained 0.99 percent of the vote. Johnson bested that performance in 2016 as the party’s presidential nominee for a second time, earning 3.27 percent of the vote, the highest percentage for the party since its 1971 inception.

For the 2020 nomination, Jorgensen navigated through a primary campaign that featured the short-lived campaigns of former Rhode Island governor Lincoln Chafee and Congressman Justin Amash of Michigan, the first sitting Congressman to be a member of the Libertarian Party. At the virtual 2020 Libertarian National Convention, Jorgensen won the nomination on the fourth ballot, edging attorney Jacob Hornberger, performance artist Vermin Supreme and activist Adam Kokesh, among others. Podcaster Spike Cohen, originally the running mate of Supreme, was picked to be the party’s vice presidential nominee. Cohen spoke to Wikinews back in June. The Jorgensen-Cohen ticket has since secured ballot access in all 50 states and the District of Columbia.

As a libertarian, an ideology that advocates for lesser government, both in the social and economic realms, Jorgensen’s issue positions include a mix of traditionally liberal and conservative stances. She supports both LGBT rights and gun rights. She opposes the police state and the taxing authority equally. And, she supports an open immigration policy while arguing against the welfare state.

With Wikinews, Jorgensen discusses her background, COVID-19, her potential cabinet, gridlock, and an assortment of issues including climate change, foreign affairs, free speech, and race relations.

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Making The Most Of Heating And Air Conditioning Systems Corona

Author: Admin Posted under: Air Conditioning Servicing

Making The Most Of Heating And Air Conditioning Systems Corona

by

tracynarvaez

When comparing heating and air conditioning systems Corona, you may want to discover some tips about how to get the right system for your house. A unit that is oversized may have issues that are not just contained to performance. You also may want to learn additional ways to conserve energy when running your system on peak energy usage days.

There was a time when houses were lacking in energy efficiency and not built as air- tights as they may be now. At that time, an oversized unit was the way to go to get the most complete performance. With better construction these days, you can go with a smaller unit.

A cooling system that is too big for your space may lead to a muggy feeling as there is not enough time for dehumidifying to take place. You may also notice mold growing in your house, even in summer. This can be another sign of an oversized cooling system. The right size of system can help you avoid these issues.

[youtube]http://www.youtube.com/watch?v=GJ18UWWpPo8[/youtube]

Professional installation of a new system will require a certain amount of measuring and taking your specific situation into account with how the house will respond to a particular system. Existing insulation can affect the overall performance, as can the position of the house and how much direct sunlight hits certain areas at different times of the day. Your own preference for the amount of indoor heating and cooling also becomes a measurable factor when sizing a new system.

When you have a system that is the proper size and installed properly, you can take additional steps to make sure the system runs efficiently and that you are getting the most out of your whole-house unit. Focus on keeping cool or warm the rooms you are using and focus the circulated air on your primary rooms. Keeping extra rooms not in use shut off will help in this process.

You can choose to install ceiling fans for further assistance when it comes to helping your unit perform at full capacity in the rooms you spend time in. A clockwise flow of air from these fans can help you keep warm air down from the ceiling, while a counter-clockwise spin will help cool a room in summer.

A boost of insulation and installation of weather-stripping can help improve energy efficiency in your entire house and keep hot or cold air from escaping from the interior space. Heavy curtains with insulated backing can go a long way toward improving energy conservation around drafty windows. These same curtains also can be a good shield against hot sun streaming into windows.

Different companies can offer competitive pricing on heating and air conditioning systems Corona. Take the opportunity to do some comparison shopping to find a system that is the right size and offers the appropriate level of performance. Going with a new system may be a good way to save money on heating and cooling.

You can find details about different

heating and air conditioning systems Corona

companies supply and honest Walton\’s Heating and Air reviews at http://www.waltonsheatingandair.com/ now.

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ArticleRich.com

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Category:Saturn (planet)

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Category:Saturn (planet)
Author: Admin Posted under: Uncategorized

This is the category for Saturn, the sixth planet from the sun in the solar system.

Refresh this list to see the latest articles.

  • 8 July 2011: Cassini spacecraft captures large storm on Saturn
  • 23 June 2011: Saturn moon Enceladus may have salty ocean
  • 19 December 2009: NASA flyby of Saturn moon Titan produces first image of liquid on another world
  • 7 October 2009: New ring discovered around Saturn, could explain dark side of its moon
  • 22 September 2009: Images show new dimension to Saturn’s rings
  • 25 June 2009: Saturn moon may contain liquid water
  • 22 November 2008: Saturn’s rings are much older than previously thought
  • 11 August 2008: Wikinews Shorts: August 11, 2008
  • 28 March 2008: Cassini discovers organic material on Saturn moon
  • 21 March 2008: Scientists say that a ‘global layer of water’ exists on Saturn’s moon Titan
?Category:Saturn (planet)

From Wikinews, the free news source you can write.


Saturn, photographed by Cassini in 2004. Image: NASA.


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Pages in category “Saturn (planet)”

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Toothpaste fills cavities without drilling

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Toothpaste fills cavities without drilling
Author: Admin Posted under: Uncategorized

Thursday, February 24, 2005

A paste containing synthetic tooth enamel can seal small cavities without drilling. Kazue Yamagishi and colleagues at the FAP Dental Institute in Tokyo say that the paste can repair small cavities in 15 minutes.

Currently, fillers don’t stick to such small cavities so dentists must drill bigger holes. Hydroxyapatite crystals, of which natural enamel is made, bond with teeth to repair tiny areas of damage.

Yamagishi and colleagues have tested their paste on a lower premolar tooth that showed early signs of decay. They found that the synthetic enamel merged with the natural enamel. The synthetic enamel also appears to make teeth stronger which will improve resistance to future decay. As with drilling, however, there is still the potential for pain: The paste is strongly acidic to encourage crystal growth and causes inflammation if it touches the gums.

The paste is reported in the journal Nature.

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Awesome Chicago Vacation Ideas In Lincoln Park For Everyone

Author: Admin Posted under: Farming

byAlma Abell

There is something for everyone in the Lincoln Park area of the great city of Chicago. If you are looking for some fun locations where you can spend some vacation time in Lincoln Park, here are a couple of ideas.

ComedySportz Theatre

One entertainment venue for those who enjoy improv is the ComedySportz theatre. Different nights feature different shows for all ages, and classes in improv are also offered for those willing to push their nerves out of the way and go for it. Whether you choose to take a class, or simply watch, those looking for a fun night and a good laugh will find it at the ComedySportz Theatre Lincoln Park.

Steppenwolf Theatre

For those appreciate the art of theatre, the Steppenwolf Theatre is just one theatre of many in Chicago’s version of Broadway. There are currently shows playing through the end of this month, and shows coming up include a play version of “Animal Farm” as well as titles “Marie Antoinette” and “The Herd.” So, if you’re looking to see something original, and cinemas are just not doing it for you, look up shows and times at the Steppenwolf Theatre.

Lincoln Park Zoo

Animal-lovers looking for something to do should check out the Lincoln Park zoo. It is a large zoo, and sure to show you a number of animals that you have likely never seen in real life including dwarf mongooses, Klipspringers, and sand cats. A myriad of reptiles, fish, birds, and amphibians are present as well. If animals fascinate you, consider spending an afternoon in the Lincoln Park Zoo, one of the few Chicago vacation ideas in Lincoln Park.

The Boka and the The Butcher and the Burger

If you’re hungry and looking for Chicago vacation ideas in Lincoln Park, should check out the Boka. The menu items have a range of poultry, beef, and seafood, including duck breast, lamb shoulder, and monkfish. The price range is a bit higher here, so be ready to spend at least upwards of $70 for two. For a lower price, consider an evening out at The Butcher and The Burger. There is a variety of restaurants in Lincoln Park for all price ranges, so grab some food and spend some quality time with loved ones!

Chicago actually can be a cool vacation spot. If you are going to Chicago in the near future, consider the exciting venues above. Click here for more information.

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Cloned cattle’s milk and meat seem safe, according to new study

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Cloned cattle’s milk and meat seem safe, according to new study
Author: Admin Posted under: Uncategorized

Tuesday, April 12, 2005

A National Academy of Sciences report (.pdf) last year said that while the milk and meat from cloned animals would not likely make anyone sick, more research should be performed. Now, a new US-Japan study published in the April 11 online issue of the Proceedings of the National Academy of Sciences says that milk and meat from cloned cattle does indeed appear to meet industry standards and appears to be safe for human consumption.

As BBC News reports, the scientists, led by Professor Jerry Yang from the University of Connecticut, compared the produce from two beef and four dairy clones, all derived from a single Holstein dairy cow and a single Japanese black bull, with the produce from normal animals of similar age and breed.

The meat was analysed against more than 100 physiological, tissue and cellular components, while the milk was analysed for protein, fat and other variables. No significant differences between the produce of cloned and normal cattle were found. Higher levels of fat and fatty acids were found in the cloned cow meat, but they still fell within beef industry standards.

While the study showed the cloned produce to be within the range approved for human consumption, the scientists stressed that the research was still in its early stages. Their findings, they said, provide “guidelines” for further research with larger numbers of clones from different genetic backgrounds.

Cloning livestock may one day increase yields by copying those animals that are especially productive and especially resistant to disease.

“The milking production levels in the US are three to four times higher than levels in China; maybe even five times or more compared to cows in India and some other countries,” Professor Jerry Yang told BBC News. “Therefore cloning could offer technology for duplicating superior farm animals. However, all the products from these cloned animals must be safe for human consumption. …and it is a major issue for scientists to provide a scientific basis for the data and information to address this question.”

As USA Today reports, there is currently no law governing the sale of meat or milk from the estimated 1,000 to 2,000 cloned farm animals in the USA. But since 2003, the US Food and Drug Administration (FDA) has asked producers to voluntarily keep the meat and milk of these animals, and that of their offspring, out of the food supply.

Wired News reports that companies like ViaGen and Cyagra, which offer livestock-cloning services, have also been waiting for several years for a final say from the FDA.

“For the United States agricultural industry, (cloning) can reduce the number of cows necessary for milking,” said Jerry Yang “They can have a pleasant environment and produce even more milk.” He also said that cloning cattle from the United States, where genetic breeding is more advanced, could save developing countries 50 years of breeding.

The idea of cloning animals for human consumption is not without its critics. First, there are the welfare concerns, as most cloned animals do not make it to term before being born, and many of those that do are born deformed or prone to illness. The Humane Society of the United States has asked for a ban on milk and meat from clones for just this reason. Second, there is still the concern that healthy clones may have subtle defects that could make their food products unsafe to eat.

As the Washington Post reports, some critics are asking why it is necessary to clone cows that produce huge amounts of milk when surpluses, rather than shortages, are the main problem facing the U.S. dairy industry today.

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American film director John Hughes dies at age 59

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American film director John Hughes dies at age 59
Author: Admin Posted under: Uncategorized

Thursday, August 6, 2009

American film director John Hughes, noted for such movies as Sixteen Candles, Pretty in Pink and The Breakfast Club, died Thursday due to a heart attack.

A statement, released by his representative, said that he experienced the heart attack while on a morning stroll in Manhattan, New York. Hughes was born on February 18, 1950 in Michigan. He started his career as an advertising copywriter in Chicago. By the end of the 1970s he was a frequent contributor to the National Lampoon magazine.

In the 1990s, he made the Home Alone series, which became a box office sensation and turned Macaulay Culkin into a star.

In recent years, Hughes stepped back from the movie industry to spend more time with his family. He is survived by his wife of 39 years, Nancy, two sons and four grandchildren.

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