A critical part of estate planning is deciding how to distribute your retirement assets, such as IRAs or 401(k)s. One option is to name a trust as the beneficiary of these accounts, which can offer benefits in terms of control and protection. However, this decision also comes with potential tax implications and administrative complexities. It's important to weigh the pros and cons carefully before proceeding.
Here's a closer look at the six most common estate planning mistakes and how you can sidestep them.
Many of you already have estate documents, probably executed many years ago. You need an estate attorney to look over your documents every 10 years or so. Here are a dozen points to review.
As we approach the end of College Savings Month, we focus on the allowed and disallowed uses of 529 savings. Many may not know that 529 college savings accounts can be used for things besides tuition at a traditional four-year institution, several other types of education programs qualify.
Historically, you have had three options; leave it in the 529 college savings account in case the need for further higher education arises, change the beneficiary to another family member so they can use it for higher education, or withdraw the funds in a nonqualified withdrawal and pay taxes. Now, you have a fourth option. The Secure 2.0 Act changed the law so that you can now roll a portion of your 529 savings accounts over as Roth IRA contributions for the beneficiary.
Identity theft, one of the fastest-growing cybercrimes, can derail your personal and professional life. As we all live in the digital realm, it's crucial to understand the risks associated with sharing personal information and the steps to mitigate them.