Qualified Plans and the IRS Case Study

Qualified Plans and the IRS Case Study

October 09, 2017

A common assumption among those who have assets in qualified accounts is that they actually own them all. Because these funds are 100% taxable a person may own only 60-70% of them. Uncle Sam owns the rest!! This example (click link below) assumes an IRA owner who has most of their assets in qualified accounts and has very little in nonqualified assets.

The challenge is, if they cash in the qualified money it is all taxable! They may not know, when RMD time comes along, they also have the potential of a 50% penalty if the full RMD is not withdrawn. Fortunately, there is an option.

In the comparison below you can see that by cashing out the qualified account and putting the cash in a LegacyTree Foundation LegacyPlan the owner could receive over $110,000 more over a term of 20 years than if they just paid taxes on the withdrawn money.

Legacy Tree Foundation only works directly with advisers, not the public so you must work directly with an adviser who works with Legacy Tree Foundation.

Contact my office for more information at 561-962-2775

Click the link below.

Qualified Client Case Study