Common Errors In Retirement Distribution Planning

AuthorSeymour Goldberg
ProfessionSenior partner in the law firm of Goldberg & Goldberg, P.C., Woodbury, New York
Pages2-4
2
COMMON ERRORS
IN RETIREMENT
DISTRIBUTION
PLANNING
In general the following common errors often take place when dealing
with the retirement distribution rules from an estate planning point of
view:
• Failure to timely update and / or review your existing beneficiary
forms on file with the IRA institution and the employer sponsored
retirement plan.
• Failure to periodically review your existing legal instruments to de-
termine whether the retirement assets are charged with an allocable
portion of the estate tax upon your death or are exonerated from
the estate tax liability allocable to the retirement assets. If exoner-
ated, then make sure that there are sufficient other assets to pay the
estate tax allocable to the retirement assets.
• Exonerating the retirement assets from any estate tax liability will
permit more tax- deferred growth of the retirement assets and tax-
free growth of Roth IRAs. However, this exoneration approach is
at the expense of other beneficiaries of the estate.
• Failure to do an estimated estate tax liquidity analysis to determine
the extent of your estate tax liability and the source of payment of
the estate tax liability.
• Failure of your beneficiaries to know how the inherited IRA distri-
bution rules work after your death.
• Failure of your surviving spouse to know about the spousal rollover
rules or direct transfer rules after your death.
• Failure of your surviving spouse to timely implement the spousal
rollover rules or direct transfer rules after your death.

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