The best time to plan for retirement is always now. As the tax laws are constantly changing, so are the types of funds, annuities and IRAs available. Because of the vast options, it is a good idea to consult with a retirement planning attorney to help you sort through those options and determine what is best for you. At the Deborah Sexton Law Office, we have the knowledge and experience about state and federal tax law to properly advise you regarding retirement planning in Fayetteville and throughout Arkansas.
There are many retirement options available
With our knowledge and experience, we are prepared to review the various retirement options available, explaining both the advantages and disadvantages of each, in order to create the retirement plan that best meets your individual needs. Our services include the following:
- Beneficiary designations
- Where to position a qualified plan in estate planning
- Early withdrawal of money from retirement plans
- Pension plans
As you take the necessary steps to organize your affairs, you must decide which family members you want to benefit from the estate plan, which includes your IRA and other retirement assets. Each choice you make will have important tax consequences. Consider these steps as you start to plan:
- Survey your assets: Such as investments, savings, retirement plans, real estate, life insurance, annuities, businesses, other personal assets, etc.
- List key contacts/relationships: Such as estate planning attorney, financial advisor and CPA to use for yourself and your family
- Organize important papers: Will, Trust, deeds, beneficiary designations, life insurance policies and account statements
- Estimate what you’ll need: To ensure financial security during your lifetime
- Define your goals: Such as providing for your spouse, children, grandchildren, charitable donations, etc.
The most important step is to obtain professional guidance from an estate planning attorney, financial advisor and CPA.
Retirement planning goes hand in hand with estate planning
Retirement planning allows you to arrange your assets to benefit your surviving spouse. This is why retirement planning is usually one of the first steps in estate planning. The choices you make about your retirement plans can affect you and your heirs for many years to come. Important choices such as these should only be made after careful consideration and the advice of an experienced retirement planning attorney.
Rules for an IRA or 401(k) are complicated
Individual retirement accounts are governed by a very complex set of rules and regulations that must be followed when the account holder dies. These regulations determine how long the account can be held before cashing in and the amount of taxes that must be paid. With proper planning, however, an IRA or 401(k) can ultimately exceed the original inheritance amount, which is a great benefit to your heirs.
Without a Retirement Plan the consequences can be expensive
If an IRA or 401(k) is cashed in immediately by a designated beneficiary, the money will likely be greatly reduced by state, federal and even estate taxes. At the Deborah Sexton Law Office, our retirement planning attorneys in Fayetteville Arkansas are able to put your individual retirement account to work for your named beneficiaries, by using strategies designed to spread out tax payments and promote the growth of the account. Merely designating a beneficiary for your IRA or 401(k) does not provide the protection you need. However, we can help you to be proactive in protecting your finances from unnecessary taxes.