Estate Planning Mistake 7: Improperly Planing Distribution of Retirement Accounts

In today’s podcast, David Phillips discusses the blessing and the curse of building and leaving your Qualified Accounts, like your IRA or 401k to your children and grandchildren. While our goal is to build security for our future retirement, there is such thing as too much. By leaving our Qualified money to our heirs we are simply subjecting them to a greater tax on their income as well as on the Qualified money you leave them.

The 2020 SECURE Act eliminated the Stretch IRA and introduced the onerous “10-Year-Rule.” All inherited Qualified Accounts must be distributed and cleaned out 10 years from the passing of the surviving spouse. In Part 1 of the series of Qualified Account distributions, David will not only discuss the new rules of engagement, but he will also share key strategies that you can implement to help mitigate this huge tax liability.

Chapters:

01:30 – One of the most common and most destructive estate planning mistakes is to NOT plan for the proper distribution of your Qualified Accounts to your children and grandchildren.
02:15 – The number one enemy of retirement is longevity. Living too long can stress our assets so much that we eventually run out of money.
03:00 – Another enemy to our retirement savings is taxes. Since Qualified Accounts like an IRA have never been taxed, when we, or our beneficiaries touch even a dime, income taxes are levied at the tax bracket of the recipient.
04:45 – The US government plans on using “off balance sheet assets,” like cash in Qualified Accounts to pay off the $32 trillion deficient.  
06:00 – Introducing The 2020 SECURE Act – The Tax Bomb set to evaporate 50% of your Qualified Accounts and disinherit your children and grandchildren.
07:00 – The SECURE Act eliminated the Stretch IRA. The Bombshell Battle Plan, Special Report explains the rules as well as way to navigate the perils of leaving Qualified money to your children. It is available at www.shop.epmez.com
09:00 – Required Minimum Distributions (RMD) now begin at age 73. Distributions are required from age 73 until the account is run dry. If there is any left and the children inherit it, they will have to take distributions based on the same RMD table as the grantor.
10:00 – How to mitigate this forced income tax? Spend it, convert it to a Roth IRA, give it to charity, and/or create a Tax-Free Wealth Creation Strategy with a permanent life insurance policy.
16:00 – Don’t disinherit your family. Go on the offensive and read The Bombshell Battle Plan special report.
17:30 – Wealth Creation through the Discounted Dollar Strategy.  Take a few dimes today to create guaranteed dollars for tomorrow to pay the taxes.
18:00 – More insights and solutions in the next episode.

Learn more:

• Estate Planning Made Easy website
• shop.empez.com, use discount code: EPMEZ  to receive a 50% discount

• The 10 Most Common Estate Planning Mistakes, 4th Edition, by David T. Phillips
• The Bombshell Battle Plan: How to Defend Against the IRS Secret Weapon, at shop.epmez.com
• Generational Wealth Strategies newsletter

Contact:
    •    Estate Planning Specialists at 888-892-1102
    •    The Durfee Law Group at 480 324-8000

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