Check the background of this financial professional on FINRA's BrokerCheck.

Retirement Planning
As you may know by putting money in IRA Accounts you can potentially lower income taxes and save for your retirement.  As business owners, you can set up qualified plans (such as 401K’s and profit sharing plans) with much higher contributions to save for retirement with the goal to lower income taxes.  If you have worked for a company and have a 401K/403B plan that is still in your previous employers plan there are 3 main reasons that you would want to roll over to an IRA Account. 
  1. First Reason is you would have a lot more choices on your investments. 
  2. Second Reason would be to setup a stretch IRA to avoid income taxes in lump sum when these accounts pass on to your heirs at the time of your death. With a stretch IRA your heirs can take the required minimum distributions based on their own life expectancies to avoid paying tax on the lump sum for two generations.
  3. Third Reason would be to set up your Roth IRA Account. After the funds are rolled over to the traditional IRA you can follow the IRS Rules to change to the (Roth IRA) .. then the Income from Roth IRA’S are tax free!
There are several choices investors have when rolling over money from one plan to another. Since each choice has its own implications, it is recommended that you discuss and compare all potential fees, expenses, commissions, taxes, and legal ramifications with your qualified advisor before making a rollover decision.

A Roth IRA distribution is qualified if you've had the account for at least five years and/or the distribution is made after you've reached age 59½, because of your total and permanent disability, in the event of your death or for first-time homebuyer expenses. Distributions made prior to age 59 1/2 may be subject to a federal income tax penalty. If converting a traditional IRA to a Roth IRA, you will owe ordinary income taxes on any previously deducted traditional IRA contributions and on all earnings. We suggest that you discuss tax issues with a qualified tax advisor.

Investors should note that stretch IRA's are designed for individuals who will not need the money in the account for their own retirement needs. Factors to consider when stretching an IRA are potential changes to tax law, inflation and other risks.

As each individuals tax situation is different, take time to consider all the facts and consult with your tax advisor before initiating a rollover. Distributions received before age 59 1/2 are subject to an early distribution penalty of 10% additional tax unless an exception applies. This information is not intended to be a substitute for specific individualized tax, legal or estate planning advice.
Certain tax advantages can allow people with 401k/403b to create tax-deferred wealth for themselves and their families. Without proper planning these retirement accounts may be diminished upon the death of the owner by a combination of estate and income taxes. Some Americans are at risk of falling into what we call the “Accumulation Trap.” People need to work on distribution and income planning to take advantage of the IRA distribution rules that can allow you to parlay your IRA into a family legacy.

A key question in retirement planning is: “What is your exit strategy for your retirement program?” This boils down to the main question: Is your 401k/403b an IOU to the IRS? If you don’t already know, the answer is probably yes.

Who do you want standing first in line when it’s time to distribute your lifetime of work to the next generation? Should it be your children and grandchildren, or should it be Uncle Sam? I can show you how to set up your IRA, in order to defer the income taxes resulting from a lump-sum distribution if your IRAs are transferred to your children. Currently, without a multigenerational plan in place, the IRS could be your primary beneficiary.

Depending upon the size of your 401k/403b and your taxable estate, your combined income and death taxes could boost what your children pay on the remainder of your retirement plans to more than 70%. Do you wish to leave a legacy or an enormous tax bill?

Most Americans are unaware that retirement plan assets may be subject to both an immediate income tax and estate tax upon your death. That’s the bad news. The good news is that it is now possible, by using a multigenerational IRA that is endorsed by the IRS and allowed by Congress, to at least defer the income tax and help leave a more lasting financial legacy to your family.

Why would you want to go another day without understanding more about these taxes? Your first step is to simply make a phone call to your advisor or call Mr. Sam Hoss and get started by evaluating your current situation and reviewing your beneficiary documents and custodial agreements.
Connect with us on: Go to LinkedIn  Go to Facebook  Go to Twitter  

To Schedule an Appointment, click here.

©2017 Hoss Financial™ All Rights Reserved.

Insurance and Tax services offered through Hoss Retirement & Insurance Services, Inc., which is not affiliated with Woodbury Financial Services, Inc.

Securities and Investment Advisory Services offered through Woodbury Financial Services, Inc., Member FINRA, SIPC and Registered Investment Adviser. Insurance services offered through Hoss Retirement & Insurance Services, Inc. which is not affiliated with Woodbury Financial Services, Inc. Woodbury Financial Services Inc. does not offer tax or legal advice.

This communication is strictly intended for individuals residing in the state(s) of AZ, CA, FL, ID, NV, PA and TX. No offers may be made or accepted from any resident outside the specific states referenced.

Check the background of this financial professional on FINRA's BrokerCheck.