Retirement Planning Strategies

Retirement Plan Strategy #1: “Stretch-out IRA”

• Provides Maximum Long-Term Income Tax Deferral
• Keeps all Retirement Plan Proceeds in the Family
• Stretch out over Life Expectancy of each beneficiary under Separate Share Rule
• Spousal Roll Over
• IRA Trust to maximize the stretch out, do estate tax planning and protect from creditors & mismanagement. Reference Reasons to Consider an IRA Trust

Retirement Plan Strategy # 2: "Spend Down, Reposition or Convert”

• Spend down while alive since IRAs are bad assets to die with
• Reposition into more favorably taxed assets
• Leverage through investment of distributions into life insurance which is income tax free and can be estate tax free inside Irrevocable Life Insurance Trust
• Convert to Roth IRA:
  • Qualified Distributions are income tax free
  • No MRDs until death
  • Passes Income Tax Free at Death

Retirement Plan Strategy # 3: “Charitable Planning with Testamentary CRT”

• Estate and Income Tax Deduction
• No IRD
• Lifetime income
• Convert ordinary income to capital gain rate
• Eliminates MRD Requirements but maintain tax deferral
• Replace Gift to Charity with Life Insurance

For those interested in more detail on the above issues, please feel free to refer to Mr. Wittick’s presentation entitled Maximizing Your Retirement Plan Savings.