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©UFS Continuing Education for CPAs Presented By: Title: Stretch Your IRA Distributions if YOU COULD CREATE THE RETIREMENT OF A LIFETIME L0509038017[exp0410][xDC]

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Presentation on theme: "©UFS Continuing Education for CPAs Presented By: Title: Stretch Your IRA Distributions if YOU COULD CREATE THE RETIREMENT OF A LIFETIME L0509038017[exp0410][xDC]"— Presentation transcript:

1 ©UFS Continuing Education for CPAs Presented By: Title: Stretch Your IRA Distributions if YOU COULD CREATE THE RETIREMENT OF A LIFETIME L [exp0410][xDC]

2 Continuing Education for CPAs Stretch Your IRA Distributions Metropolitan Life Insurance Company, 200 Park Avenue, New York, NY New England Financial is a registered mark for New England Life Insurance Company, 501 Boylston Street, Boston, MA 02116, a MetLife company. MetLife Insurance Company is registered with the National Association of State Boards of Accountancy (NASBA), as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State Boards of accountancy have final authority on the acceptance of individual courses for CPE credit.

3 Continuing Education for CPAs Stretch Your IRA Distributions Agenda The Stretch IRA Strategy How the Stretch IRA Strategy Works The Variable Annuity Stretch IRA

4 Continuing Education for CPAs Stretch Your IRA Distributions The Stretch IRA Strategy The Stretch IRA Strategy is a retirement planning strategy that helps: Minimize current income taxes Continue tax deferral Create a legacy This strategy is designed for investors who will not need IRA assets for their own retirement income needs.

5 Continuing Education for CPAs Stretch Your IRA Distributions The Stretch IRA Strategy A successful Stretch IRA Strategy requires: An understanding of the Required Minimum Distribution (RMD) rules A review of beneficiary designations Educating beneficiaries about Stretch IRAs Planning for estate taxes

6 Continuing Education for CPAs Stretch Your IRA Distributions The Stretch IRA Strategy Understanding RMD rules: Required Minimum Distributions (RMDs) are amounts that must be withdrawn each year after an IRA owner turns age 70½, or Amounts that must be taken by beneficiaries after the death of an IRA owner. (Roth IRAs are not subject to the RMD requirement)

7 Continuing Education for CPAs Stretch Your IRA Distributions The Stretch IRA Strategy Understanding RMD rules: Federal tax law only allows tax deferral until funds are withdrawn and requires that an IRA owner who turns age 70½ must begin withdrawing money and paying income tax on the withdrawals The IRA owner can take more than the RMD amount

8 Continuing Education for CPAs Stretch Your IRA Distributions Uniform Distribution Table AGE DIVISOR DIVISORAGEDIVISORAGE The Stretch IRA Strategy

9 Continuing Education for CPAs Stretch Your IRA Distributions How the Stretch IRA Strategy Works Beneficiary Options: Spouse Non-spouse

10 Continuing Education for CPAs Stretch Your IRA Distributions How the Stretch IRA Strategy Works Keep IRA in decedent’s name Treat inherited IRA as surviving spouse’s own IRA Disclaim and pass to contingent beneficiaries Take a lump sum distribution (tax concerns) Spouse as sole beneficiary can:

11 Continuing Education for CPAs Stretch Your IRA Distributions How The Stretch IRA Strategy Works Non-Spousal, Non-Natural Beneficiaries may: Keep IRA in decedent’s name Withdraw entire account value within five years Roll over IRA to a decedent IRA in beneficiary’s name Take lump sum distributions (tax concerns)

12 Continuing Education for CPAs Stretch Your IRA Distributions How The Stretch IRA Strategy Works CASE STUDY Larry is 61 years old and changing employment Larry decides to roll his $100, (k) into an IRA Larry has a wife (Beth) and son (Tim) No future contributions are made to Larry’s IRA Only RMD amounts are withdrawn Assumes a 6% rate of return in the IRA

13 Continuing Education for CPAs Stretch Your IRA Distributions How The Stretch IRA Strategy Works

14 Continuing Education for CPAs Stretch Your IRA Distributions Consider using a variable annuity as a funding vehicle Include your beneficiaries in the planning process Plan for estate tax contingencies A Variable Annuity Stretch IRA

15 Continuing Education for CPAs Stretch Your IRA Distributions A Variable Annuity Stretch IRA In addition to tax-deferred earnings, a variable annuity offers: A wide variety of funding options Professional money management Optional protection features Optional “living” benefits* *Speak to your tax professional to determine if these benefits affect your RMD. For any tax-qualified account, e.g. IRA, the tax deferred accrual feature is provided by the tax qualified retirement plan. Therefore, there should be reasons other than tax deferral for acquiring an annuity contract within a qualified plan, such as the other annuity benefits.

16 Continuing Education for CPAs Stretch Your IRA Distributions A Variable Annuity Stretch IRA What Costs Are Involved? Separate Account Charges Administration Charge Contract Charge Investment Management Fees and other expenses Separate Account and other charges for optional riders and benefits Withdrawal charges – Possible Early Withdrawal Penalty

17 Continuing Education for CPAs Stretch Your IRA Distributions A Variable Annuity Stretch IRA Include Your Beneficiaries In Your Plans Spousal Beneficiary: Treat as own Keep IRA in decedent’s name Non-Spousal Beneficiary: Treat as own—roll over assets to a decedent IRA Keep inherited IRA in decedent’s name Other Options: Elect to receive immediate lump sum Leave IRA in decedent’s name and have balance distributed within five years

18 Continuing Education for CPAs Stretch Your IRA Distributions A Variable Annuity Stretch IRA Plan For Estate Tax Contingencies Consult with your tax and legal advisors Share this information with your heirs

19 Continuing Education for CPAs Stretch Your IRA Distributions The Stretch IRA Strategy  A Program To Create A Legacy How The Stretch IRA Strategy Works  Spreads Distributions Over time A Variable Annuity Stretch IRA  Consider A Variable Annuity Summary

20 Continuing Education for CPAs Stretch Your IRA Distributions Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance products. Clients should seek advice based on their particular circumstances from an independent tax advisor. MetLife, its affiliates, agents, and representatives may not give legal or tax advice. Any discussion of taxes herein or related to this document is for general information purposes only and does not purport to be complete or cover every situation. Tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances. Clients should consult with and rely on their own independent legal and tax advisers regarding their particular set of facts and circumstances. Circular 230 Disclosure

21 Continuing Education for CPAs Stretch Your IRA Distributions Variable annuities and variable life insurance are sold by prospectus only, which is available from a registered representative. Clients should carefully consider the product’s features, risks, charges and expenses, and the investment objectives, risks and policies of the underlying portfolios, as well other information about the underlying funding choices. This and other information is available in the prospectus, which should be read carefully before investing. Product availability and features may vary by state. All product guarantees are based on the financial strength and claims- paying ability of the issuing insurance company The amounts allocated to the variable investment options of your account balance are subject to market fluctuations so that, when withdrawn or annuitized, it may be worth more or less than its original value. Disclosures

22 Continuing Education for CPAs Stretch Your IRA Distributions Peter Rosengard is an investment advisor representative and a registered representative of MetLife Securities, Inc. (MSI), which is a registered investment advisor and a member of FINRA/SIPC. Insurance offered through the Enterprise General Agency, Inc. (EGA), Somerset, NJ 08873, and the Metropolitan Life Insurance Company (MLIC), New York, NY Products and services offered through R 4 Employee Benefit Solutions TM and R 4 Enterprises TM are not guaranteed, endorsed or recommended by MLIC, MSI or the EGA. R 4 Risk & Wealth Solutions TM is a marketing name for Peter Rosengard’s firm. Not A Deposit Not FDIC Insured Not Insured By Any Federal Government Agency Not Guaranteed By Any Bank Or Credit Union May Go Down In Value Disclosures

23 ©UFS Thank you! Thank You! Please fill out our seminar evaluation form.


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