Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
¶ … Taxes on Large Retirement Plan Balance: Dr. Norma
One solution is to roll the IRA into a corporate retirement plan (Josephs, 2014). This can allow Norma to purchase life insurance within the plan and at the same time be confident of being able to distribute the policy outside the plan because the policy value will eventually be lower than the price of the accumulated premiums. Of course, all of this would be dependent upon whether or not Norma could go back to work or even find a qualified retirement plan into which she could roll the IRA. At the same time, it is important to remember that the IRS does not permit cash surrender for policy valuation. This, however, is probably not the best idea because at 68 it is highly unlikely that Norma wants to roll the IRA into a new plan much less go back to work in order to do this.
A different solution would be to have the IRA assets be part of a restricted management agreement. This would allows the fund to be managed by an investment manager for a fixed amount of years, giving that manager the freedom...
The good idea behind this option is that with such leeway and freedom, the manager will deliver better returns over the long run than he would if it were a quarter to quarter arrangement. The manager of course would have to be able to deliver the kind of returns that would justify tying up the money for that fixed amount of time, but if he can deliver, this option could be worth it.
A third option would be to roll the IRA into a corporate retirement plan, as in the first option, but then the idea that is an alternative to the first would be to have the benefits of the new plan that includes her kids. This would of course depend on whether or not her children work in the same corporation. So there is a lot that depends on this scenario. But if they do work together, the benefits of this idea are that the plan would be annuitized so that when she died there was excess value that would go to the kids since they were part of the new plan.
A further option could be to take the IRA and invest it in a VC program (venture capital).…
References
Efficacy of Family Limited Partnerships: A Case Study. (2015). R&R. Retrieved from http://www.assetlawyer.com/what-we-do/asset-protection/domestic-asset-protection/efficacy-of-family-limited-partnership/
Josephs, M. (2014). Best corporate retirement plans: An even better list. Forbes.
Retrieved from http://www.forbes.com/sites/maryjosephs/2014/09/04/best-corporate-retirement-plans-an-even-better-list/#75cd28ce4362
Tax Estate taxes are an important part of financial planning, especially for those who have significant assets they wish to leave to others when they die (Bradford, 2010). Wealthy individuals like John and Jane Smiley may be able to avoid the death tax, depending on how great a level of wealth they actually have. For those who are close to the threshold, as the Smiley's may be, it is very
Taxes Estate taxes, as well as Gifts tax have an influence on individuals in the United States of America. The Federal government imposes laws that govern Gifts and Estates. There has been a lot of uncertainty on Gift and Estate tax, but this cloud has finally disappeared. This reprieve is however, temporal since changes in governments mean new laws. In the year 2013, exclusion of Estate and Gift taxes has
Thank you for your consideration of our company as your trusted Certified Public Accountant (CPA) and we hope that this is the beginning of a mutually beneficial relationship. Our company provides superior accounting services to clients with a wide range of accounting issues and needs. Therefore, we are ready to provide excellent accounting guidance and expertise that will help you achieve personal and financial success. In addressing your issue of
Tax Efficient Financial Strategies Company Name Here Managing Director MACROBUTTON AcceptAllChangesShown [name] Tax Efficient Financial Planning Astute financial planning in the current economic climate is critical. While we cannot control the ebbs and flows of either the market or the decisions of the government that affect one's personal finances, we can attempt to grow and preserve wealth through tax efficient financial planning. There are solid vehicles available, if utilized correctly, can successfully minimize income, capital
The case had nothing to do with taxes but rather with changes in a state probate law, but the outcome was still the decision that ex post facto laws affecting solely civil matters meet constitutional muster under Article I section 10. Subsequent rulings have reaffirmed this position of the Court and made it clear that retroactive taxation would be considered constitutionally permissible despite other objections. Specifically, in United States v Carlton
(the Bush Tax Cut: One Year Later) The members of the AFSCME believe that the Taxes imposed under the Bush administration has influenced them very unenthusiastically, since it has assisted to restrict their capability to concentrate on vital national problems for fairly a few years, due to the reality that the Tax Act comprises every clause that would help the affluent and well-to-do and might add more new tax cuts