Please read this very closely and click on the here link for the full story and read pages 12-17.  Senator Max Baucus (Democrat) is attempting to add a very bad markup to the Highway Investment, Job Creation and Economic Growth Act of 2012. This change will dramatically change the Stretch IRA Option and take awat a great income planning tool. It appears to have support from the finance committee, but I don’t think it would get through Congress – if it even gets out of committee.  I will be watching this bill closely and will keep you informed. For now it’s business as usual.

For more information about IRA Distribution planning. Click on the book icon below.

In 1974 Congress passed The Employee Retirement Income Securities Act (ERISA).                        This act marked the birth of the modern retirement plans many of us have been contributing to for 30 years or more. Out of this landmark legislation grew IRAs, 401(k)s and other company sponsored plans, SEPs, 403(b) plans used by educators, and most other qualified retirement plans. ERISA was designed to encourage Americans to prepare for retirement and be less dependent on Uncle Sam.

The government gave Americans four attractive incentives to save:

1. Participants were allowed to tax deduct their contributions.
2. Their gains were tax deferred.   
3. These Retirement accounts were exempt from creditors. 
4. And let’s not forget payroll deduction. For company employees, payroll deduction was the best thing since sliced bread. If you never saw or touched the money, it was easier to save for retirement.

With all of these enticements, saving for retirement was practically irresistible, and Americans began to put away millions in IRAs and other retirement accounts. But, there was a catch! These accounts ultimately became a TAX PRISON!

For many, IRAs, 401(k)s and other qualified retirement accounts are the bulk of their retirement savings. These savers made systematic, tax deductible contributions during most of their working lives, and after turning age 70½ they must take systematic, fully taxable, withdrawals. It’s not uncommon for the current balance in a retirement account to be two or three times the amount deposited over the working years. The miracle of compound interest can grow tax-deductible contributions into sizable—and taxable—IRS Nest Eggs. With all of the great tax incentives to save for retirement, Uncle Sam accomplished his goal. “You saved the TAX on the SEED; but now you must pay the TAX on the CROP.”

The good news is there are steps you can take to regain control of your IRAs and other retirement plans.

For more information about The Top 10 IRA Mistakes, click on the book icon below.

The sense of being lost and alone is among the most terrifying feelings imaginable. Picture yourself in a rental car, driving in a major city for the first time. It’s the middle of a stormy night, you are completely lost, and the only tool you have to find your way is the address of your destination. You are in a bad part of town, there is no one in sight to offer directions, and your cell phone battery just died.

Just ahead, through the heavy rain, you can barely make out a fork in the road. You must make a decision and you sense that if you take the wrong turn, you might find yourself in a dangerous situation. In that moment you remember the agent behind the rental car counter asking whether you wanted to pay an additional $19.95 to have a navigation system (GPS) included in your rental agreement, and you declined. As the fork in the road draws nearer, you realize that you must make a choice right now and you have no way of knowing which way to turn. This nightmare could have been avoided if you had chosen to get the GPS to help you find your way.

Planning for a secure retirement can also become a nightmare for many people, with today’s complexities of IRS regulations and hidden tax traps. Navigating the IRS minefield of rules, deadlines, penalties, and over-taxation is similar to trying to find your way in a strange place without a GPS. Hidden tax traps lurk around every corner, and finding help to get good directions is more challenging today than at any time in the past. When you are retired or planning for retirement, taking the wrong fork in the road can result in costly mistakes that cannot be reversed. This book is your retirement planning GPS and will help you navigate the IRS minefield and avoid making wrong turns that could result in a retirement nightmare.

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