The Wagner Law Group’s Post

More lawsuits on use of plan forfeitures. It is always a good time to review how your retirement plan is using forfeiture dollars and document the process! https://lnkd.in/diTfDqYK

Here’s a simple TFSA tip. If you’re married or have a common-law partner, check to make sure you have designated them as “successor holder”. This will allow your spouse to take over your TFSA on your death on a tax-free basis. Ask the company holding your TFSA to review this with you. Also, I’m happy to take your call if you have questions and thoughts about tax, retirement and estate planning, and investing strategies. https://buff.ly/485XS1n.

A More-Enlightened Approach to Uncashed Distribution Checks No #retirement plan sponsor likes the idea of dealing with uncashed distribution checks, nor do they wish to draw unwanted regulatory attention or to become embroiled in costly litigation. Unfortunately, many plan sponsors place themselves in precisely that spot, becoming unnecessarily over-burdened with unresolved uncashed checks, while inviting unwanted regulatory scrutiny and/or legal challenges by having flawed uncashed check policies. In his 2/8/24 article in RCH's Consolidation Corner blog, Tom Hawkins lays out a "more-enlightened" approach to the problem of uncashed distribution checks, seeking to minimize their numbers, while simultaneously steering clear of the “red flags” that could land them in hot water. #401k Read the full article: https://bit.ly/3urkXfs

Choosing the right beneficiary for your 401(k) can save your loved ones money on taxes. Find out how to avoid probate and ensure your retirement savings go where you want them to after you pass away: https://bit.ly/4b1M9Rw #estateplanning #401k #beneficiary #taxes

Rules surrounding IRA inheritances have become more complicated for some designated beneficiaries. Most notably, a "10-year rule" applies to most non-spousal beneficiaries who receive inherited retirement accounts. This rule requires that beneficiaries of IRAs must liquidate the entire account by the end of the 10-year anniversary of the IRA owner's death. However, proposed Treasury regulations require that beneficiaries under this 10-year clock, who inherit from an IRA owner who died after their Required Beginning Date, to take annual Required Minimum Beneficiary Distributions (RMBDs) in years 1-9. These proposed regulations have left taxpayers unsure if they're required to follow them and take an annual RMB. Read our blog to learn more: https://lnkd.in/grmNUywr

The survey results are clear: 84% don’t have a Lasting Power of Attorney Document in place. * But why does it matter? When someone loses the ability to make decisions for themselves, their assets, like their savings and pensions, are put on hold. Even jointly owned assets, such as bank accounts and properties, are affected. This freezing of assets can lead to significant financial difficulties and emotional distress, especially when dealing with a major life event concerning a loved one. A Lasting Power of Attorney allows someone to act on your behalf if you can't, due to illness, accident, or age. Without it, managing your affairs becomes very challenging. Many underestimate its importance until later in life, but we all know how unexpected events can occur at any age. Planning for the future is essential, and having a Lasting Power of Attorney is a key part of that preparation. Don't wait until it's too late – act now to protect yourself and your loved ones. Join us at Joslin Rhodes, your local Estate Planning experts, for our upcoming workshop where we'll explore Lasting Power of Attorneys and other Estate Planning topics including Wills, Care Fees Planning and Inheritance Tax in more detail. Our team will be there to answer any questions you have. Tap here to secure your spot: https://lnkd.in/dHwEvNVZ WHEN: Wednesday, 13th March, 6pm to 7pm WHERE: Joslin Rhodes, The Planning Rooms, Wellington Court, Preston Farm, Stockton on Tees, TS18 3TA #LastingPowerOfAttorney #Teesside #CareFees #EstatePlanning *Survey results collected from our Retirement Readiness Quiz.

An article written by Jacklyn Wille in Bloomberg Law focusing on 401(k) fund benchmarks notes that judges have reviewed “…more than 250 proposed class actions filed by retirement plan participants since 2020…”, and that “…differences have emerged in how carefully they scrutinize the comparisons made between a specific plan’s fees and investments and the alternatives held up as better options.” Referencing recent lawsuits and the need for a uniform, national pleading standard, our Daniel Aronowitz, President of Encore Fiduciary, is quoted as saying, “There needs to be one national pleading standard and then plan sponsors can know what they’re doing.“ Daniel goes on to discuss that the current pleading standard is a “crapshoot” that fails to properly weed out the many illegitimate cases that are filed.    👉 You can read the full article here: https://lnkd.in/g_AYqCSe   #EncoreFiduciary #excessfeelitigation

Why All Financial Professionals Should Support The Overturning Of The DOL's Fiduciary Rule HINT: IT HURTS RETIREES. BETRAYAS THEM. ***The "Fiduciary Rule" fails to serve the interests of retirees. ***Americans with low savings balances, including millions of minority investors will be disenfranchised from the professional financial guidance they desperately need. ***The DOLs illogical preference for fee-based compensation will cost Americans millions of dollars in needless costs. I'm just warming up. Please read my article in Financial Advisor Magazine. Everyone who agrees with my perspective should let their elected representatives know how the fiduciary rule betrays retirees. Fight back! https://lnkd.in/gr6p9rVa Tom Hegna Sheryl J. Moore Michelle Richter-Gordon Sheryl Hickerson Gary Mettler David F. Sterling, Esq. Peter -Coach Pete- D'Arruda, RICP®, MRFC® Pete Dunlap David Dean Holland Dr. Donald Moine Steven Lee, PhD, DCJ James Wong Kim O'Brien Mary Ann Lacey Gray, CLTC Bruno Caron Jason Ray Focused on Retirement Income Jean Statler Lesley Mann Jim Dobler, ChFC, RICP, CASL Jim Hutson Insured Retirement Institute (IRI) Financial Advisor Magazine Tyrone Clark Doug Mantelli Eric Marhoun Mike Tripses #fiduciary #constrainedinvestor #dol

Rules surrounding IRA inheritances have become more complicated for some designated beneficiaries. Most notably, a "10-year rule" applies to most non-spousal beneficiaries who receive inherited retirement accounts. This rule requires that beneficiaries of IRAs must liquidate the entire account by the end of the 10-year anniversary of the IRA owner's death. However, proposed Treasury regulations require that beneficiaries under this 10-year clock, who inherit from an IRA owner who died after their Required Beginning Date, to take annual Required Minimum Beneficiary Distributions (RMBDs) in years 1-9. These proposed regulations have left taxpayers unsure if they're required to follow them and take an annual RMB. Read our blog to learn more: https://lnkd.in/gJBDwtxJ

Welcome to our latest issue of our by-monthly newsletter Hugh James Smart Money, attached below. In this issue we look at various issues including financial protection, capital gains tax and trusts for estate planning. Nobody wants to consider what would happen if they became too ill to support their family financially. Financial protection is essential to creating a secure future for your loved ones, but understanding what cover you may need can be confusing. On page 8, we discuss whether you have considered the implications financially if you or someone in your family were unable to earn money, became ill or were to die prematurely. It’s not something we like to think about, but if you have left regular employment and are now either retired or have become self-employed, then any previous protection you received from an employer becomes your responsibility. On page 5, we delve into a new analysis of FCA figures. Since 2015, individuals over the age of 55 with defined contribution (DC) pension pots have enjoyed full freedom to decide how to manage their pensions; purchasing an annuity (a guaranteed income for life) is no longer mandatory. We examine how people have utilised these newfound freedoms and the tax implications that have followed. On page 11, we look at ways to potentially reduce a Capital Gains Tax (CGT) liability, from using your annual exemption to saving in an Individual Savings Account (ISA). Cuts to the CGT exemption mean that arranging your investments as tax-efficiently as possible is more important than ever. Trusts are a powerful tool for estate planning, providing flexibility and control over asset distribution. Properly structured, they can address various scenarios and requirements, ensuring that your legacy is managed according to your wishes long into the future. Read the full article on page 6. If this is of interest, we can also introduce you to our in-house trust and estate team at Hugh James. A complete list of the articles featured in this issue appears on page 2. Whether planning for retirement, investing your money or protecting your wealth, we can assist with every aspect of your financial planning. As always the team and I are available to assist, simply email us on ifa@hughjames.com or contact your adviser directly.