Planning Perspective
Email This Article Bruce DooleJanuary 10th, 2012
IRA Beneficiaries
A beneficiary form for an IRA sounds pretty straight forward. You fill out the application, write down your beneficiaries and you are done, right? Wrong. Mistakes on beneficiary forms are one of the least understood and least paid attention to areas of financial planning. Yet, they can be very costly if mistakes are made or the custodial provisions in the contract are not understood. Last month we talked about how to stretch an IRA into a Multi-Generational IRA and the benefits of doing so. This month we wanted to dive into the details of whether a Multi-Generational IRA is right for you.
Two questions you want to consider are:
- Do you have a substantial retirement account that you want to leave to your children or even grandchildren?
- Do you want to mitigate or even eliminate taxes on your IRA or 401k?
If the answers to either one of these are yes, please fill out a beneficiary review checklist if you haven’t done so already (call our office if you haven’t received one) and send it back to us so we can see if a Multi-Generational IRA is an appropriate next step for you.