Avoid Mistakes with your IRA or Retirement Plan!

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Many people have spent a lifetime saving, and their retirement accounts are often their largest asset. Yet little has been done to protect that money from excessive taxation during job changes, retirement or inheritance.

To better serve our clients, we have deepened our expertise in the complex IRA distribution area. Especially if you have company stock inside a retirement account or have inherited a retirement account, please make sure to talk with us before an irrevocable mistake is made.

The checklist below applies to anyone with an IRA or retirement plan, and it could save you or your heirs thousands of dollars!

Nine Steps to Security in your IRA or Retirement Plan: This year I will...

  1. Obtain a copy of the beneficiary form for each IRA or retirement account I own.
  2. Make sure there is a primary beneficiary and a contingent beneficiary for each account.
  3. Make sure that if there are multiple beneficiaries, the share for each is clearly identified. I will also make sure the beneficiary designation is "per stirpes" unless I choose another treatment for contingent beneficiaries.
  4. Make sure that the financial institution has my correct beneficiary selections on file.
  5. Keep a copy of all my IRA and retirement plan beneficiary forms and give copies to my financial advisor and attorney.
  6. Let my beneficiaries know where to locate my beneficiary forms.
  7. Ask my adviser if I am eligible to convert to a Roth IRA and plan for an income stream from your Roth IRA that is tax-free!
  8. Ask my adviser about distribution sequencing and options so my money may last longer.
  9. Review my beneficiary arrangements annually to make sure they are correct and reflect any changes due to major life events, new tax laws, or a beneficiary forgetting my birthday!

 

This checklist is focused on beneficiary arrangements and the type of retirement plan that you hold. If you are taking distributions or transferring a retirement plan, then there are different mistakes to watch out for!

For a retirement plan review, please call us at 215-628-9200.

 

Harvest Advisers, LLC
550 Pinetown Road, Suite 224
Fort Washington, PA 19034