Your Opportunities at Age 701/2
Del.icio.usEvans Taylor
Financial Planner Registered Representative
You’re probably enjoying retirement, and you’ve probably already done some planning to ensure you’ll continue to enjoy retirement.
Yet you’re approaching an important milestone in your financial life. After age 701/2,
federal tax law requires you to take a minimum distribution from your traditional IRA, 401(k) or other qualified retirement plan. If you are not meeting this requirement, you may incur tax penalties.
It’s important to understand that even if you do not need the income, you must begin taking withdrawals by a certain age. If you do not withdraw the minimum amount, you will incur a 50 percent tax penalty on the difference between the required minimum and the amount actually distributed, in addition to claiming it as ordinary income.
Here are some things you should consider as you evaluate your options:
Know your beneficiary(s).
Beneficiary selection is extremely important; make sure that you have the right beneficiary listed. If your IRA provider or your 401(k) administrator has changed-or you have had a life event change-you need to make sure that your most current beneficiary designation is on file. If it is not, at your death, your wishes may not be carried out.
Understand taxes. It’s important to understand the tax implications at your death and whether or not there are strategies to help address the impact of taxes.
Maintain a current record of assets. If you have not done so already, take an inventory of all your retirement plan assets. Assets that require minimum distributions need to be carefully monitored.
Review your distribution strategy. Do you have more than one type of qualified account? In some cases it may make sense to consolidate your accounts. Do you know where your minimum distribution will come from? It’s important to balance your income needs with a required minimum strategy.
Leaving a legacy. Some people want to make a difference in the lives of their loved ones by leaving them a financial gift. Whether it’s a gift from a grandparent helping with a grand-child’s education or a gift to a favorite charity or educational institution, leaving a legacy is one of the greatest accomplishments of the human spirit!
Whatever your desires may be now is an opportune time to ensure your legacy strategy can be implemented according to your expectations.
Take Control of Your Financial Future. The decisions you make today may impact you for the rest of your life. Consider each of these areas of planning as you evaluate your financial future. Call Evans or Mei Li at 521-0818 ext 139 to schedule a complimentary meeting or attend our free workshop.
FREE Retirement Investment Strategies Workshop
* Taxes * Inflation
* Investment Portfolio Management
* Outliving Your Retirement Income
Tuesday, November 20, 2007
* 10am - 11:30am Saturday, December 1, 2007
* 10am - 11:30am
Where: New England Financial 1100 Ward Ave. Suite 500
SEATING IS LIMITED!
Call Mei Li at 521-0818 ext 113 to reserve your seat today.
This seminar is for informational purposes only. Neither New England Financial nor any of it agents are in the business of giving tax, legal or accounting advice. Attendees should consult their own professional advisors to determine the appropriateness of any course of action. New England Financial is the service mark for New England Life Insurance Company & New England Securities, Boston, MA 02116. Securities products, such as mutual funds, may be discussed. The information contained in this article is not intended to (and cannot) be used by anyone to avoid IRS penalties. Neither New England Financial nor its representatives provide tax or legal advice. Please seek the guidance of your own professional tax and/or legal advisors before making any decisions. Securities products are offered through New England Securities Corp (member FINRA/SIPC). Evans L. Taylor & Mei Li Lee are Registered Representatives of New England Securities Corp. Branch office: 1100 Ward Ave. Suite 500, Honolulu, HI 96814 (808) 521-0818. L11074838[exp1207][HI]
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