IRA, Ira Holdings, James Lang discussed on The Financial Quarterback
We have a special treat today, talking about the death of the stretch IRA we have James Lang bestselling author, and I believe, also CPA attorney financial visor. He is the author of the book the two hundred and fourteen thousand dollar mistake, how to double your social security and maximize your IRA is a good morning. James morning. Thank you for great. Well for for those who don't know of your work. Can you describe your background? Well, my background is, and a let's call it a number cruncher. So what I like to do is. Jeez, for IRA retirement plan. Okay, we'll we'll, we'll have you call back. You're in a bad line. But folks were talking today about the two hundred and fourteen thousand dollar mistake, had a double your social security, potentially and maximize your IRA's. This is a free book, for those of you who schedule and keep your no obligation review. Jonathan Clements, author of how to think about money says social security is the best income stream available to retirees. And you want to get as much of this income as possible, but how to find out make it a priority to read Jim Lang's brief, but fabulous insightful new book Burton Malki will says Jim Lang has done it again in his clear. Sinked style, Jim is shown those about to enter retirement, what? What to do with one of the biggest decisions for their retirement? So call us going to take your questions all hour on any manner financial. So give us a call. We're talking today, how to double your social security and maximize your IRA's. We're also talking about Roth conversions and the death of the stretch IRA and we're going to be talking today about some of the big potential changes in legislation that passed in the house Farrar. A and retirement owners also to be telling you what you can do now. And what has to happen for this Bill? To become law. But in the book, we're giving away today, the two hundred and fourteen thousand dollar mistake, had a w social security and maximize your IRA's Jim Lang I talks about one of the reasons he wrote this book was to help marry tax payers get the most out of their social security benefits, though estimates vary as many as ninety seven percent of married social security, recipients failed to optimize their benefits. So that could be you a second reason is that the failure to optimize social security, benefits, frequently imposes significant consequences on the wife, who must go, it alone after the death of her husband's statistically, the greater probability. So if you're, you're listening with your hubby. Give them loyal bones safe time to call the financial quarterback for that second review. You don't want to be going it alone in retirement because you trusted your husband too much mall for marital bliss. But make sure that you and your hunting or both in on the money. If you have questions on stocks bonds. Annuities mutual funds. Whatever question you have. No question is a dumb one James lying. Go ahead. You're on with Josh Chilean sea the financial quarterback. Okay. Thanks to our sorry about these sound say, give give give us a background description of what, what you do. I. Well, I am a CPA that attorney in a financial advisor. But the thing that probably would be most interesting to your listeners is I actually try to keep people's petite advice regarding IRAs and retirement plans, and depending on what you want to talk about today. There's some new legislation. That's pensively disastrous impact on many of the people who I suspect are listening today. Well, let's talk about what the new legislation is and why it's a disaster for some listeners for many losses. All right. So what, what you're referring to is commonly or what I called death of the stretch IRA. And if you like what I will do. I talk about what the new I is a talk about what the existing why is then what the proposal is. And what is our sure that okay? So the existing laws. Number. Let's say that one of your listeners as a million dollars for that matter a hundred thousand dollars in their IRA Merlin ks for three D te'o. Some kind of retirement plan with these plans happened on that nobody has paid income tax on this money. Someday. Somebody will when you turn seventy technically April, first of the year at deterrent, seventy and a half you have to start taking money out. Dan? I your children or grandchildren, or nieces or nephews, or whoever you easy IRA too must start. What's called a minimum required distribution of the IRA and typically the beneficiary if they are doing everything. Right. Just takes out a little bit. Every year for the rest of their life. Called the minimum required distribution of the inherited IRA. And basically, there's just you have to pay tax on to take it out, or more accurately, your beneficiary will. But you get the spur or stretch time that you have to pay taxes, and before I go any further is is that part of it clear. Sure. Yeah, I've been talking about the death of the stretch for a while. But folks, we have a great expert James Lang, author of the two hundred and fourteen thousand dollar mistake. But I love how you're breaking it down. So keep going all right to the Kristen was. So let's just again say your, your listener has uneven one hundred thousand dollars in an IRA. He their spouse die Lee, the to their child who let's say is fifty years old. And according to the tables has roughly thirty year life expectancy. The minimum required distribution the inherited IRA would be determined by taking one over thirty or roughly three percent of the inherited IRA leaving the other ninety seven percent intact. Then next year they would take one over twenty nine at separate cetera. Within the next year after that one over twenty eight see you have this enormous tax deferral and then has been the way it has been for years. And people who are planning, and I suspect it your listeners and your clients have planned for this, and then after an IRA owner dies, actually does this now late game for what are your listeners clients, who are in their sixties and seventies. And they told all along. Hey, guess what after you die your children threats or to further taxes on the IRA, we're going to change our mind because we want some more. Money now. So what the house did is they voted, I believe four hundred seventeen to three to put a ten year limit on how long your beneficiary and push out the taxes on the IRA. So instead of you know, let's say pushing them out for thirty years, or forty years for child, maybe sixty or seventy years for van child. The government says, basically where we want all our money in ten years can run the numbers that we can talk about ten how quantitative you wanna get? It comes really a financial disaster for the children of IRA owner's Anthony. Huge disappointment for people who have worked all their lives play, by the rules, put money in their IRA's. Like they were supposed to kept money in their IRA's. Many of your listeners have sacrificed, they didn't. They will harder. They didn't spend money that they could have spent now the government late in the game decides they're going to change the rules, much to the detriment of what I was called middle-class IRA in retirement plan, owners, we're going to talk about what you can do to protect yourself from the death of the stretch, but I call us for the death of the stretch. IRA review at eight eight nine at eight. Josh if you have an IRA and you don't understand the stretch, I arrive, it's one of the biggest benefits in the tax code, and it'll probably be gone by your end. I do not see any way that we can fight it not on four hundred seventeen to three vote. That means it's bipartisan, but you should be taking advantage of the a rare window of political opportunity before this law passes to revisit your. IRA holdings and your tax strategy. So call us now. Eight eight nine at a Josh and we'll give you a copy of Jim Lang's book, the two hundred and fourteen thousand dollar mistake. But call us now. Eight eight nine at eight Josh this week, will be Long Island. New York City, short hills, New Jersey, Hackensack New Jersey, Tom's river in a spot near use of call us now. Eight eight on a Josh eighty eight nine hundred eight Josh for the no-obligation second opinion on your wealth, aided eight nine hundred Josh, we'll be back after this tax deferred. Vehicles such as 4._0._1._K's and IRA's sound good upfront. But did you realize that when you retire, you'll have to pay taxes on all your earnings? You can legally minimize your taxes, when you withdraw retirement funds with tax free IRA's, and other tax favourite accounts. Call the Dolinsky advisory group now at eight eight eight nine eight eight Josh, that's eight.