Ira Distribution Rules At Death: Critical Knowledge For Good Decisions

By Robert D. Cavanaugh, CLU

The distribution rules required at the death of an IRA owner depend on several things:

1. Did the IRA owner die before or after the required beginning date?

2. Who is the beneficiary?

In order to carry out the wishes of the IRA owner, evaluating both practical and estate planning implications of various decisions during the IRA owner’s life is essential. Important choices occur when the IRA owner makes his beneficiary election and, if married, by the spouse after the death of the IRA owner.

If you do not know the rules as they pertain to your choices, you are shooting in the dark. The wrong decision can cost money and likely cause the distribution of your IRA to be different than you would want.

Lets make sure you know the rules of the game.

The first element is the required beginning date. For traditional IRAs, SEPs, SIMPLEs, this is Aril 1st of the year after turning 70 1/2. This rule does not apply to Roth IRAs, which have rules of their own.

YouTube Preview Image

There are several broad categories of beneficiaries:

1. The spouse.

2. A non-spouse beneficiary.

3. No beneficiary.

Let’s take each of these beneficiary elections and see how distributions are treated, depending on whether the IRA owner dies before or after the required beginning date.

The Spouse as Beneficiary

If the spouse is the only beneficiary, he or she can make an election that has a bearing on when the distributions must begin. The election is to treat the owner’s IRA as if it were their own.

Heads up: This election choice is unavailable if a trust is the beneficiary of the IRA, even if the spouse is the only beneficiary of the trust. A rollover may circumvent this problem.

If the IRA owner dies before the required beginning date, the spouse is the only beneficiary and the election made, the required distributions don’t have to begin until the IRA owner would have turned 70 1/2. The spouse would probably elect to apply this rule if the IRA owner was younger.

If the spouse elects not to be treated as the owner, the required minimum distributions (RMD) start right away and are based on the remaining life expectancy of the spouse. When the spouse dies, the distributions continue using the remaining life expectancy of the spouse.

If the IRA owner dies after the required distribution date and the spouse does not make the election, the distribution must be made over the life expectancy of the spouse; however, the life expectancy of the IRA owner can be used any year it is greater. Taking the attained age of the IRA owner at death and looking in a table determines the life expectancy. Then each year you subtract one. The point here is that the spouse needs to make a comparison every year to obtain the longest pay out.

The takeaway from this is that knowledge allows for good decisions. The best choice will depend on how old the IRA owner is when they die, the age of the spouse, health status and whether or not there are children or grandchildren to provide for in a distribution.

Non-Spouse Beneficiary

Distributions are required over the remaining life expectancy of the beneficiary if the IRA owner dies before the required beginning date. If there is more than one beneficiary, the oldest is used.

Heads up: Let’s say the IRA owner is a widow age 80. She names her sister, age 82, and her children, ages 55, 58 and 60 as beneficiaries. Her desire to help her sister causes the IRA to be distributed over the remaining life expectancy of an 82 year oldprobably much quicker than desired.

If the IRA owner dies after the required beginning date, the distributions must be made over the longer of the remaining life expectancies of the owner or beneficiary.

No Beneficiary

If the IRA owner dies before the required beginning date, the entire IRA account must be paid out over five years.

If death occurs after the required distribution date, distributions simply continue over the remaining life expectancy of the IRA owner.

I think you can see there are a number of scenarios possible. When you combine this with the complexities of the IRA distribution rules, it makes good sense to sit down with your financial planner, tax attorney and accountant and make sure your IRA, SEP or SIMPLE IRA is coordinated with your estate plan and the most probable distribution pattern coincides with your desires.

About the Author: 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


Permanent Link:

Things To Consider Before Applying For Auto Loans In Vicksburg, Ms

byAlma Abell

Every day, there are many people who decide to buy a vehicle. Some of these people have saved money for a long time and are ready to pay for their vehicle with cash. However, the majority of consumers decide to get an auto loan to purchase their new vehicle. If you’ve decided to purchase a new or used vehicle, and have decided that you would like to finance it, there are a few things to consider before applying for Auto Loans in Vicksburg, MS.

One thing that to consider before applying for an auto loan is how much you can afford. When determining this, you need to consider things, like your auto insurance, as well as any maintenance services, such as oil changes, that will need to be done on your vehicle. If you’re purchasing a used vehicle and it needs things like new tires, or if you need to replace the bumper, you will need to factor in those costs when you are determining the total price of your vehicle, as well.

Before applying for an auto loan, it’s also important to consider your credit score. Unfortunately, many people apply for vehicle loans and find out that their credit isn’t good enough to get a loan. Therefore, it’s important to monitor your credit report to make sure there is nothing on it that would make it more difficult to get a loan. Keep in mind there are lenders who will give you a loan if you have bad credit, but many of these lenders will require you to get a joint loan with another borrower. It’s also important to remember that if you have poor credit, your interest rate is likely to be higher, too.

As you can see, there are several things to consider before applying for Auto Loans in Vicksburg MS.Plus, you can easily apply for a loan online and get pre-approved for a loan within about thirty minutes. However, if you have questions, or prefer to speak to a loan officer, you can call and speak with a loan officer, or you can stop by one of their branch locations to fill out an application.

Need Of Financial And Retirement Advisors}

Need of Financial and Retirement Advisors


jacy spin

There is a question that comes in the mind of every person that is doing some kind of job and that is what after retirement. How will they meet the expenses of their life after retiring from the job? In present days it is quiet a wise decision to take care of the time after retirement even when you are in your job.

You can take the service of retirement advisors in this respect. The retirement advisors guide you about different aspects of retirement planning and they suggest you ways of tackling your retirement. Some of the retirement advisors suggest that you should postpone your retirement as much as possible so as to build up a good amount in your retirement fund. Some will suggest you that you should try to do some part time job. there is a chance that you will get a job that is related with your hobby. You can also opt for a full time job. Some of the retirement advisors also suggest that you should try to decrease the household expenses and also try to control your other expenses as much as possible. It is always advisable to take the services of retirement advisors regarding your retirement. Tax consultants are also called as tax advisors. He is such a person that guides you in minimizing your taxes and increase your tax refunds. The tax consultants are trained persons in law and the accounting practices. These people help in managing taxes and cash flow. The filing of taxes can be very difficult at times and it may involve lot of time and energy, it is due to this reason that it is always beneficial to hire the services of tax consultants. Tax consultants are also very important in hassle free operation of business. In successful operation of business it is very important to get right kind of financial advice especially regarding the capital of business. The tax consultants provide information about the deductions related to tax and the applicable tax credits. It is due to these reasons that these people are so important in the successful operation of business. Another important question regarding financial matters is that where to invest our hard earned money. It seems to be lucrative to invest in financial market and earn profits but it is not always easy. It is because not all of us have knowledge about financial market. We can earn good profit in financial market only in case we invest at the right time and in right securities. In order to get proper guidance about how to invest our money it is advisable to take advice of financial planners. Financial planners guide us what is the right time to invest in the market and where should we invest our hard earned money. But you should be very careful in the selection of Financial planners. We should consider the past experience of the financial planners before hiring their services.Financial Planners


tax consultants


retirement advisors

Article Source:

Need of Financial and Retirement Advisors}

Ace The Sport Of Fly Fishing With All The Right Kind Of Equipment}

Submitted by: Rogers Stevens

What is fly fishing? Fly fishing refers to a specific method of catching fish using an artificial fly. A special weighted line is used and the flies are hand-tied to resemble natural lures.

You have to have a proper idea about fly fishing equipment if you want to crack the success mantra of fishing at the very first go. At first, you need to decide on several factors such as the type of water- whether you will go in salt water or in fresh water. You also have to consider what type of fish you want to catch and what your level of expertise is. Fly Rod Blanks and other fly fishing equipment will largely depend on the above mentioned factors. You will get a wide variety to select from while buying fly fishing lines, fly fishing knives, fly fishing reels and fly fishing boots.

You have to choose your first fly rod and reel very carefully. You need to have a balanced Fly Fishing Outfit that will perfectly match the size and type of your fish.

When it comes to fly fishing, there is no piece of equipment more important than the fly fishing rod. The rod is what makes the artistic whip-like cast possible, and what allows the fisherman to delicately place a fly on top of the water at 40 yards right where the rising fish is.

When shopping for fly fishing rods, it is important to read plenty of fly fishing rod reviews online.

Fly fishing is most popular for catching trout and salmon. However, this method of fishing is also used for catching a wide variety of other species which includes carp, pike and bass. With the advancement in technology, stronger reels and rods have been developed. These help in catching marlin, tuna, and even some sharks.

Fly fishing outfit includes boots, waders, rod and reel. There are plenty of pockets in a good quality fly fishing vest. It is made of breathable material. This material helps to wick away moisture, giving comfort to the wearer. Wearing a matching hat will not only make a style statement but will also protect you from harmful UV rays.

Fly fishing boots are essential for keeping your feet dry and warm. You can wear wader when you start for water excursions so that you can protect your clothing. You will need a select number of knives, as each one will serve a different purpose and each is specially made for certain species of fish.

You cannot simply go fly fishing without having lines, reels and flies. There are different styles and brands available in the market. RIO Fly Lines are quite popular among flying fish experts.

Having good quality fly boxes is also very much essential. The boxes should be waterproof. It is better if the boxes have compartments and threaded boxes. It is important to keep the flies dry even if dripped in water. Some of the boxes come lined with foam. You can hook your flies into the foam and arrange them in any order.

About the Author: Rogers Stevens is a fly fishing guide and a columnist too. He is associated with

and loves to share his views on various topics such as Fly Rod Blanks and fly fishing outfit.


Permanent Link:}

Ways To Avoid Dilemmas With Last Minute Christmas Gifts

By Mary Braun

Ok, so youve worked tirelessly around the clock to create the perfect Christmas atmosphere for your guests as you await their arrival. You have hung all of the decorations, the Christmas dinner is all but ready to be eaten, and youve checked your gift list up and down to make sure that all gifts are accounted for. Your guests begin to arrive and something occurs that you simply did not conceive would be a problem. Someone you overlooked or someone who simply was not on your gift list turns up with one of your guests. Your first instinct is to panic and frantically scour the house for something that you may be able to put together as a list minute gift. Lets stop this whole scenario before you create that crudely put together gift and rewind a bit to help you get yourself out of this unexpected jam.

Lets go back to the time when you were shopping for the others on your list. After you have everything covered and everyone that you expect to arrive is checked off of your list, your shopping experience is not quite over yet. Were going to need some materials that will cover any unexpected visitor that could possibly walk through your door. Naturally the gift will not be perfect, but it can at least seem as if you planned on them being there rather than quickly wrapping whatever you have lying around the house that you think may suit them. First lets pick up a gift card or two to some restaurants or national department stores that you enjoy shopping at. If the unexpected guest never shows up, the spare gift isnt wasted. It can be used for a future birthday or anniversary gift, or even saved for yourself.

YouTube Preview Image

While were at it, a few nice candles and a non-gender oriented gift basket are a nice idea to purchase as well. A nice bottle of wine paired with a sinful box of chocolates makes a nice gift basket for anyone. And if you never have to give it away during the holiday season, you can indulge in it yourself. You may need a couple of toys that will suit either or a boy or girl may also be necessary, say a cleaver looking piggy bank or a silver plated yoyo. Maybe even a harmonica which is far less annoying than a drum!

Now all we have to do is make sure that we have a little bit of extra wrap and gift tags on hand, and we are ready to tackle whatever problems may arise. Fast forward to the party, and there they are, walking through your door, that unexpected guest that previously could have put you in a state of desperation will not upset you. All thats left to do now is excuse yourself for just a moment while you quickly and easily prepare a gift that will make it seem as if you were well prepared for any scenario, which after all, you were. That unexpected guest will be impressed with your thoughtfulness and remember your holiday party for years to come.

About the Author: Impress an unexpected guest by having extra

Christmas gifts

around to make them feel welcome at your party. Wealthwood Gifts has an abundance of personalized gifts to choose from. Free ground shipping on orders over $50. Article Source: Ways to Avoid Dilemmas with Last Minute

Christmas Gifts


Permanent Link:

How To Save Money For Retirement

By Marilyn Pokorney

Saving money for retirement can be easy or difficult depending on your current salary. If you are like 75 percent of the American population, earning just enough money in your current job to meet your monthly bills, then it’s time to do some serious thinking on how you are going to live when you retire.

Social Security isn’t going to meet all your monthly payments. That is, if Social Security, or some revised form of it, still exists when your day of retirement arrives.

Here are some tips on how to save today for your future. No matter how little, or how much, you earn today.

Estimate how much you must save to give you the income you know is necessary for you to retire in comfort.

YouTube Preview Image

Experts suggest that you will need an income equaling about 75 percent of your current take home pay. Be sure to estimate a rise in inflation which has historically been about 5.3 percent per year.

Figure out how much of your current salary will need have to save each year to achieve your retirement goal by counting backward from the year you plan to retire to see how many years you have before retirement. Include the possibility of being on a fixed income for as long as 20 or 30 years. Depending on how many years you have until retirement a U.S. Treasury bond that guarantees six percent interest might be considered, while stocks might have the potential for a much higher return, but has a much higher risk of loss.

A financial planner, stockbroker, or an accountant, can offer guidance, expertise and access to knowledge about almost any type of investment or retirement planning concerns.

Spread your money out over a variety of investments. Some will prosper while others may fail.

Set up an automatic draft from your bank account from your paycheck so that a portion of your income goes directly into your retirement funds. Pay off major debts, such as home mortgages, college loans and other significant cash-flow drains, as quickly as you can.

For more information visit:

About the Author: Marilyn Pokorney

Freelance writer of science, nature, animals and the environment. Also loves crafts, gardening, and reading. Website:


Permanent Link:

Dealing With Distractions

By Kelley Robertson

In todays business world it is not uncommon for many sales people to work from a home office. At first this may seem like a great opportunity, however, it does create some unique challenges. One of the biggest obstacles is the number of distractions that can take us away from our work and prevent us from achieving our objectives.

When you work from a home office it is easy to get distracted from work, especially if it is work that you do not particularly enjoy like prospecting or cold calling. Watering the plants, running errands or even doing laundry can be a welcome change from the daily drudgery of selling. And, if you have young children, the number of distractions increases dramatically.

I, too, work from a home office and have had to deal with this challenge. Here are a few ideas that can help manage these distractions and improve your productivity.

– Create an office. When I first began working from home almost a decade ago, I used to work at my dining room table. Unfortunately, this put me in the middle of our household action. My wife would turn on the television and I would be instantly distracted from my work. In other cases, she would talk to me or ask me a question simply because I was in the same room. As a result, it was often difficult to focus on my work. Now I have an office and do the majority of my work there. If you dont have space to create an office, find somewhere in your house that has the least amount of traffic and opportunities for distractions.

YouTube Preview Image

– Set specific business hours. This is particularly important if you have young children. It can be very difficult for children to understand that they cant disturb us while were working. If you have an office, close your door and place a do not disturb sign on it. This is particularly important if you are making client calls because it prevents family members from inadvertently barging in on you during a critical call.

– Use a to do listeveryday. Having a list of what you need to accomplish each day can help keep you focused; otherwise, it becomes too easy to do other things around the house. If you know that you need to accomplish a certain number of tasks by the end of the day, it can prevent you from getting distracted during the day. One of the challenges with this is that household duties or running errands are more enjoyable compared to work we have to complete. However, I have frequently found that once I get involved in my task, the desire to do something else fades.

– Set deadlines for the projects youre working on. Although I dont have anyone holding me accountable to these deadlines, it find that this approach can help keep me on track. You can also share these deadlines with other people to help keep yourself focused especially if this type of accountability works for you.

-Give your permission to relax from time-to-time. Its okay to allow yourself to get distracted once in a while. As long its not a regular occurrence, you dont have to worry too much about it. However, if your relaxation time overtakes your work time, then you need to reconsider your priorities.

– Share your goals and objections with a group of advisors. This type of accountability works well for many people because they know they will have to report their progress on specific projects.

– Recognize that the results you achieve are a direct result of the effort you put into your work. When I first started my private practice, it was easy to put aside work and do chores or run errands. In my first year, I treated work like a part-time job, clocking an average of 20-25 hours per week. When I evaluated my results at the end of the year I realized I couldnt afford to maintain this mentality. So I started working more. And, I got better results. I eventually learned that the more effort I put into my work, the better results I achieved in terms of the revenue and income I generated. This made it easier to avoid the distractions and focus more on my work.

– Lastly, you can try an approach I learned from Brian Tracy many years. When you find yourself procrastinating on a particular task or project, repeat the following three words to yourself over and over. Do it now. This can be a great way to prevent yourself from getting distracted by other things you would prefer to do.

Distractions are sometimes positive. A break away from work can clear your mind, give you the opportunity to refresh yourself, and increase your energy level. However, it is important to remember that you have a responsibility to yourself and your business to limit these distractions.

2006 Kelley Robertson, All rights reserved.

About the Author: Kelley Robertson, President of the Robertson Training Group, works with businesses to help them increase their sales & profitability and motivate their employees. Receive a FREE copy of 100 Ways to Increase Your Sales by subscribing to his free newsletter available at



Permanent Link: