Planning for Individual Retirement Accounts

IRA accounts (including rollover accounts and Roth IRAs) allow individuals to shelter significant amounts of money to keep for a rainy day, for their retirement and to pass on, in a tax favored way, to their heirs.

Most people don’t realize that the most important objective is not just to maximize the amount they accumulate while they are working. Sure, their investments decisions are important. But, it’s planning for distribution – whether by disability, death or retirement – that determines how much the account holder and his or her family pays in taxes and how much they get to keep.

In short, the IRS has a mortgage on every IRA account. How well each individual and family plans for distribution of the account will determine the amount they get to keep.

Every IRA account beneficiary designation needs to be carefully prepared. Simple designations to “spouse” or “children” can, in the end, be very expensive. A carefully crafted beneficiary designation – by an Illinois attorney who is familiar with the tricks and traps of IRA distribution planning and estate planning – will ensure the most tax deferred growth and the least amount of tax.

With proper planning, an IRA can provide tax deferral over two or more generations. This is called a “Stretch IRA”. The rules are complex. The potential benefits can be dramatic. At Kaufman Law Group in Northbrook, Illinois, we can show how in dollars and cents the potential savings of proper IRA distribution planning and how it is coordinated with your estate plan.

Some families want additional control over IRA distributions to minor children, to beneficiaries who have special needs, to beneficiaries who have special circumstances and to accomplish certain family objectives. For those individuals, an Individual Retirement Trust gives them additional control over the IRA account, for the protection of the beneficiaries.

In 2010, the law becomes more liberal and more individuals than ever before will have the opportunity to convert their IRA to a Roth IRA. A Roth IRA provides tax-free as opposed to tax-deferred growth.

We have made a unique commitment to serving our clients who have significant IRA and retirement plan accounts. Ed Slott, CPA is nationally recognized as the nation’s expert on IRAs and Roth IRAs. Jay Kaufman is a member of Ed Slott’s Elite IRA Advisors Group, a group of professionals committed to ongoing training in this special field. Jay is the only attorney in the Chicago metropolitan area so designated. As a member of the Elite IRA Advisory Group, Jay and Kaufman Law Group can ensure that you take advantage of all the benefits of your IRA, rollover or Roth IRA account.

Whether you live in Cook County, Lake County, DuPage County, Kane County, Will County, Chicago, Highland Park, Lake Forest, Libertyville, Naperville, Aurora, or Winnetka, the Illinois Business Lawyer Jay Kaufman can help you maximize the benefits that you and your family receive from your IRA or Roth IRA account.