Pension Maximization Q and A

Q: My pension plan offers several payout options, which one should I take?

A: It depends. You have to take into consideration the options made available to you in light of your circumstances such as your marital status, retirement goals and other retirement income sources.

Q: My pension plan offers a Joint and Survivor Annuity or Single Life Annuity option, what are the main differences?

A: Basically, as the name suggests, a Joint and Survivor Annuity is intended to continue to provide a payout to a surviving spouse. Single Life Annuities have a higher monthly payout but payments cease when the owner dies. It’s important to discuss details with your personal advisors to make sure you fully understand your individual pension payout options.

Q: My pension plan offers a Joint and Survivor Annuity option, is that the best option since I am married?

A: It could be the best option but it is not necessarily the best. Depending on your situation, you may be able to maximize your pension by electing a Single Life Annuity option and using some of your funds to incorporate life insurance into your strategy. It is important to emphasize, however, the importance of discussing these matters with your qualified advisors to help ensure you make appropriate choices for your individual situation.

More Updates

IMPORTANT TRUST DEADLINE APPROACHING

For trusts that inherited an IRA in 2019, an important deadline is approaching. The due date to provide required trust documentation to the IRA custodian to ensure that the longest payout period possible is available for the inherited IRA is October 31, 2020. Generally, only individuals who are named on an IRA beneficiary form can

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admin October 27, 2020

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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admin May 20, 2020

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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admin April 22, 2020
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