In our roundup for professional advisors, we explore common choices for designated beneficiaries, the pros and cons of a private foundation, basics of donor-advised funds and more. Read below to stay in-the-know on industry news.
Roundup for Advisors
Personal Planner: IRA and 401(k) Designated Beneficiary Options
Most individuals will eventually pass away with an IRA or 401(k) balance reasonably close to the value of their plan at age 70. The eventual distribution options for an IRA or 401(k) may be the largest asset in your estate. IRA and 401(k)s are transferred to a designated beneficiary that you select. The five common choices for designated beneficiary are the surviving spouse, children, charity, a trust for children or a trust for spouse and children.
Washington News: Social Security Benefits to Increase by 2.8% in 2019
The Social Security Administration recently announced the cost-of-living increase for Social Security benefits in 2019. The 2.8% increase is the largest boost in six years. The cost-of-living increase was 0% in 2016, 0.3% in 2017 and 2% in 2018. Over 67 million Americans receive Social Security and will enjoy an increased check in January of 2019.
Case of the Week: Lucky Lucy Lindstrom’s “Hurricane Grants” Charity
Lucy recently invested $1,000,000 in stock in a Canadian oil “wildcatter”. Recently, its stock rose from the $1 per share that Lucy paid to over $5 per share. She considered placing the assets in a private foundation, but they have many stringent and, at times, expensive requirements. Was a private foundation the best route for her philanthropy for disaster relief?
Article of the Month: Recent Developments with Donor-Advised Fund
Explore the basic rules related to donor advised funds (DAFs), specifically those regarding charitable deductions and benefits to donors and their family members. Learn about recent developments in tax law and policy directly affecting DAFs and review scenarios in which the recent changes may encourage taxpayers to consider DAF donations.