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New Rules for Flexible Spending Accounts

P. Lewis Robinson — Sat, 16 Oct 2010 15:21:29 +0000

The health-care reform law has three new rules that affect how much you can contribute

Lewis Robinson is attending Ed Slott’s Conference on IRA Planning

P. Lewis Robinson — Thu, 05 Nov 2009 02:51:14 +0000

Ed Slott IRA Planning Conference

Phoenix, AZ

November 4th & 5th

The Perfect Storm of IRA Opportunity
Why IRA Distribution Planning Must be Addressed Now
How to Capitalize on ANY Recent Event, Tax Law Change or Trend (Good or Bad!)
The IRA and Plan Required Minimum Distribution Rules.
The Power of the Stretch IRA
Why Most Beneficiaries Overpay Their Taxes
Common Mistakes in Setting up Inherited (Stretch) IRAs
IRA Beneficiary Form Mistakes That Wipe Out Inheritances
IRA Beneficiary Selection
What to Look For in IRA Custodial Documents
10-Point IRA Custodial Document Checklis
How to Keep Building Your IRA Knowledge-The Best IRA Resources for You
The Latest IRA Tax Law Changes, Rulings, Court Cases and Planning Opportunities
25 IRA Distribution Rules You Must Know and How to Capitalize on Them (Part One)
When Required Distributions Must Begin
Year of Death Required Distributions
IRS Reporting Requirements
Eligible Rollover Distribution Mistakes
25 IRA Distribution Rules You Must Know
Required Distributions on Inherited IRAs
Non-Spouse Beneficiary Rules
The 5-Year Rule Confusion and Mistakes that Most Institutions and Advisors Make
Splitting IRAs in Divorce
Early IRA Withdrawals—Penalty Exceptions
Spousal Rollover Rules
60-Day Rollover Relief
Creditor Protection for Plans and IRAs
Wills vs. Beneficiary Forms – Why This is a Big Deal
Use of Life Insurance to Protect IRA Values
Coordination of Estate Planning and IRA Distribution Planning
The 3 Biggest Tax Breaks in the Tax Code and How to Make Sure Your Clients Get Them All—Creating the Perfect IRA Estate Plan
The 80% Tax on IRAs—How To Avoid It
Income in Respect of a Decedent (IRD)
How to Calculate the IRD Deduction in 5 Easy Steps
Separate Account Rules for Multiple IRA Beneficiaries / Splitting IRAs
Naming Trusts as IRA Beneficiaries—When You Should and When You Shouldn’t
Avoid Major IRA Trust Mistakes That Most Other Advisors Make Routinely
Conduit Trusts vs. Accumulation Trusts
How to Determine RMDs When a Trust is the IRA Beneficiary
The Latest IRA Trust Rulings
What You Need To Know About Special 10-Year Averaging
72(t) Rules for Early IRA and Plan Distributions

Qualified Charitable Distributions from IRAs still in effect for 2009

P. Lewis Robinson — Fri, 30 Oct 2009 13:39:02 +0000

Charitably Inclined – Qualified charitable distributions (QCDs) are still in effect for 2009. IRA owners age 701⁄2 and older can transfer up to $100,000 of IRA money directly from an IRA to a qualifying charity. Those who are most willing to give to charity are also those who may not need their RMDs for this year.

It will usually pay for them to roll the money back into an IRA and give to the charity from there. The IRA owner does not include the QCD in income, nor does he receive a tax deduction for the donation.

But tax-wise this works out better than if he withdrew the funds from his IRA and donated them to charity. He would receive a tax deduction for the funds donated, but he would also have to include the distribution in income. That would increase his adjusted gross income which in turn could cause deductions, exemptions, tax credits and other tax benefits to be lost. This would increase the overall tax bill. It will pay for him to roll the unwanted RMD back into an IRA and transfer the funds to the char- ity from the IRA.

The higher your income, the more it makes sense to use the QCD approach.

9/11/09 QUOTE

P. Lewis Robinson — Fri, 11 Sep 2009 13:20:25 +0000

“Now, we have inscribed a new memory alongside those others. It’s a memory of tragedy and shock, of loss and mourning. But not only of loss and mourning. It’s also a memory of bravery and self-sacrifice, and the love that lays down its life for a friend-even a friend whose name it never knew.”
—President George W. Bush

8/17/09 -Reviewing Your Will

P. Lewis Robinson — Mon, 17 Aug 2009 13:03:21 +0000

If you are married and the combined value of you and your spouses’ estate is LESS than $4,000,000.00, I recommend you review your will. You should determine how your assets will be distributed at the death of the first spouse. With all of the constant changes in tax laws, you may even need to review your estate plans on a yearly basis (to find out if you need to review this year, please contact us).

Most of the wills prepared in the last several years for our clients were structured using a Credit Shelter Trust. You may not realize that your will was prepared with this trust so it is important to check your will. With the current Federal Estate Tax Exemption of $3,500,000.00 for each taxpayer, the surviving spouse may not like the results of their current wills.

Some disadvantages to Credit Shelter Trusts are as follows:

1. Surviving spouse’s access to the Credit Shelter Trust Assets must be restricted.

2. The deceased spouse can give the surviving spouse access to all, a portion, or none of the income from the Credit Shelter Trust.

3. If access to principal is allowed, it must be limited to health, education, maintenance, or support only. Health, education, maintenance, and support, or “HEMS”, are four magic words used by the IRS, and there’s some guidance about what they mean, but the surviving spouse will have to be careful when withdrawing principal to make sure the money’s use will fall within these parameters.

4. It adds complexity to the surviving spouse’s life. If the surviving spouse is trustee, he or she will have to maintain separate records for the trust, and ensure that he or she does not overstep the trustee’s powers.

5. If a neutral trustee is used, the surviving spouse will have to cooperate with the trustee. Further, a neutral trustte will likely charge a commission.

6. A tax return will have to be filed.

Your CPA can help you review how your assets will be distributed at the death of the first spouse. Call for an appointment to have your will reviewed or with any questions about how to determine the value of your estate.

5/18/09 QUOTE

P. Lewis Robinson — Mon, 18 May 2009 13:16:10 +0000

The six most important words: I admit I made a mistake.

The five most important words: You did a good job.

The four most important words: What is YOUR opinion?

The three most important words: If you please.

The two most important words: Thank You.

The one most important word: we.

The least important word: I.