For some clients, required minimum distributions are simply that: a requirement. Many wealthy clients may not rely on these funds to cover expenses in retirement, and the money only serves to increase their taxable income for the year. But clients may put this money to work for them in a tax–free way and at the
The IRS estimates there are more than 20 million sole proprietors in the United States, and some business owners may not be aware that they can realize immediate tax benefits by setting up an Individual 401(k) plan. As the year-end approaches, it can be an opportune time to discuss setting up an Individual 401(k), which
When discussing a possible Roth IRA conversion with clients, typically the primary barrier is identifying funds to pay the tax bill. Clients understand the benefits that a tax–free Roth can provide in retirement and to potential heirs, but are challenged by reporting additional income generated from a conversion. Using business–related tax losses to offset a
Many investors have at least one major concern about retirement: running out of money. And rightly so, according to a recent study by the Employee Benefit Research Institute that found that nearly half of early baby boomers are at risk of running short of money in retirement. Talking about retirement income with clients can help
This is not only a great way to help your clients avoid potential mistakes, but also to uncover other retirement accounts for consolidation. Approximately $1 trillion held within employer retirement plans is eligible for rollover into an IRA. This represents roughly 25% of all retirement plan assets. Discussing beneficiaries with clients can help spur them
At this point, many of your clients are likely aware of the benefits of Roth IRAs — tax–free withdrawals in retirement, no required minimum distributions, the option to leave an income–tax–free legacy to the next generation — but have been reluctant to convert their eligible traditional retirement accounts. For those clients, here are two important
Putnam’s Roth IRA Conversion Evaluator is a quick and visual way to see if a Roth conversion might be right for your client. Answer a few questions and discover the range of options a Roth IRA conversion can provide. The benefit of knowing is a few easy steps away. Please note: Your data will not