3 Questions About Your IRA Custodian

Not all custodians are regulated by the IRS and not all IRA custodians are created equal. You want to make sure you really know your custodian so start by asking these 3 basic discovery questions:

1. Who Is My Custodian (bank, brokerage firm, nonbank trust company) and How Is It Regulated?

Not all custodians are regulated by the IRS. IRA owners expect that the custodian they hire will prevent them from engaging in prohibited transactions and help them satisfy other requirements such as taking RMDs but the reality is, most don’t and are not required to.

2. Does My Current IRA Custodian Permit a Multi-Generational IRA (MGIRA) Strategy?

Absent an MGIRA strategy, your beneficiaries could get hit with a huge tax bill rather than a legacy.

3. Does My Current IRA Custodian Accept Customized Beneficiary Forms?

Even if an IRA custodian permits an MGIRA strategy, it will be meaningless if the custodian’s existing beneficiary forms are inadequate and they don’t accept custom designation forms.

If you don’t have the answers or aren’t sure, call your personal retirement distribution planning specialist – he/she can schedule a custodial review that will address these questions. Remember, custodial reviews are always FREE so there is no reason not to take advantage of this service!

More Updates

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CRDS AND ROTH CONVERSIONS – ABUSE OF THE RULES?

The coronavirus-related distribution (CRD) rules for Roth conversions have a gaping hole. An “affected person” (as we have defined in previous blogs), is entitled under the CARES Act to withdraw up to $100,000 from their IRA or workplace retirement plan. A CRD avoids the 10% early distribution penalty for those under 59 1/2, can be

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Rolling Over an RMD

Like most people’s lives, the retirement world is upside down. This is made evident by a single statement: “Required minimum distributions (RMDs) can be rolled over.” Yes, that is the new normal—at least for this year. RMDs are considered the first money out of an IRA and workplace plan. Typically, these dollars are ineligible to

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