.. Neglecting to do this is the number one mistake made by spouses who inherit because it is the key to the survival of the account after the spouse's death, and it's the key to keeping it in the family."
On page 68 he says taxes on 401(k) NUA lump-sum distributions have changed. "At one time, this special break tax break for easing the burden on lump-sum distributions from ompany plans was available two ways: using 5-year averaging or 10-year averaging. Now just 10-year averaging is used if you qualify for this tax break." In order to qualify for 10-year averaging you must have been born before 1936, you must take the distribution all in one tax year and you must have been in the plan for at least five years before the year of the distribution. He suggests that 403(b)s be rolled over into IRAs when one retires and this account protected with sufficient life insurance. This way, any savings and retirement accounts will be passed on to one's beneficiaries without major tax penalties. He states a case where a Mr. Albert Lemishow in 1993, wished to roll over the stock in what he thought would be a tax-free transaction. He was highly taxed on his Keogh self-employment plan and IRA accounts that he bought stock with and fought the IRS for five years.
In the book I'm in Debt, Over 40, with No Retirement Savings. HELP! By John L. White, (published by Everlove and Bohannon Publishing, 2004, Wesley Chapel, FL) he suggests people develop the discipline to start saving for retirement beginning with their very first job, so by the time one retires, there is enough to retire on.
In the book Just Give me the Answer$: Expert Advisors Address Your Most Pressing Financial Questions, Sheryl Garrett and Marie Swift of the Garrett Planning Network (Dearborn Trade Publishing, 2004, p says that...
"We live in a consumer culture. Sometimes it seems as if everyone is buying new cars, taking expensive vacations, and dining out. If your credit card bills are painful, you already may know that you're living more lavishly than you should Or, even though things seem fine, you may have a hunch that you're not using your money as wisely as you could. This is a good time to ask yourself, 'What are my long-term financial objectives?" Other failures, she says are Failure to set goals, not saving enough, failure to create and stick to a budget and too much debt. Other failures are the failure to maintain sufficient (or having too large cash reserves, insufficient disability insurance coverage and failure to keep an up-to-date will, as well as failure to diversify, too much focus on short-term investment results, failure to get advice from an expert when needed and being an uneducated investor. These failures, says Ms. Garrett, keep the average investor who is trying to live life in America, make dismally ignorant decisions and keeps him/her from building a secure financial future.
References
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Hubbuch, S. (1989). Writing research papers across the curriculum (2nd ed.). Chicago: Holt, Rinehart & Winston.
Peikin, D. (1998, February). Research shows homework does boost academic achievement; but over-emphasizing grades and performance may lead to cheating [Online]. Available: http//www/apa.org/releases/homework.html
