Oddlots
Random samplings of new affecting
the estate planning industry
Compiled by Christopher Weems, Associate Editor
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Company offers free Market Opportunity Guide for IRA Distribution Planning
COLUMBUS, Ohio, -- With IRAs owned by one in four American households, there's no doubt IRA business represents tremendous opportunity for investment professionals. A new guide from Nationwide Financial will help investment professionals understand how to use these IRAs as an estate planning tool for their clients.
"Extended IRAs are the next generation in estate planning power," said Michael Butler, senior vice president of NFS Distributors, Inc. "Many people are beginning to find their account balances have grown to the point where they no longer need, or want to spend all of their IRA assets. They are also beginning to experience tax concerns they never anticipated."
In fact, according to IRA expert and financial planner Ed Slott, "If IRA planning is neglected, you are just building a savings account for the government." Slott calculates that as much as 70 percent to 80 percent of an account can be owed in taxes if proper planning isn't set in place.
Why? Because at age 70-1/2 IRA owners are required to begin taking payments from their IRAs. The tax code prevents assets from accumulating forever in an IRA. According to Butler, for those clients who want to continue to maximize tax deferral, possibly beyond death, the extended IRA is a strategy worth consideration.
The Market Opportunity Guide for IRA Distribution Planning defines the potential client and the benefits an extended IRA can provide. It walks investment professionals through the process of selecting a beneficiary, distribution options and case studies featuring strategies for using the extended IRA in estate planning.
"This guide is a step-by-step process for understanding extended IRAs and how to use them to meet your clients' estate planning and wealth transfer needs," Butler said.
The guide is available to investment professionals through a The BEST of AMERICA wholesaler or by calling 1-800-321-6064.
