Distribution Planning Addresses the Following:
- All income producing assets are used as to time and amount of distribution.
- Recognizes the time scenario on qualified plan distributions (age 59 1/2 to 70 1/2).
- Which assets should stay in the "oven and cook (increase in value)" and which assets should be taken out of the "oven and served now."
- Qualified Retirement Plans have an 11 year window (age 59 1/2 t0 70 1/2) whereas Non Qualified assets, which are purchased with after tax dollars, do not have a restriction.
- Recently a trade a trade journal crossed my desk and said, "The the future of retirement planning will emphasize Asset Distribution," a procedure my firm has addressed for over a decade.
Retirement Plans Should Address the Following:
- Qualified Retirement Vehicle:
- Is my tax bracket at time of retirement distribution lower than when I made my contributions?
- Am I aware that I can outlive distributions from Qualified Plans?
- Does my taxable income put me into a higher or lower tax bracket than I am in now?
- After Tax Dollar Vehicles:
- Am I utilizing tax deferred and tax preferred distribution?
- Business Owners and Practices:
- Does my retirement plan address the sale of my practice?
- Does my retirement plan address terms of practice sale?
- Does my retirement plan address whether a tax qualified plan is better than after tax investment vehicles?
- Does my retirement plan address future estate taxes?
- Does my retirement plan address the possibility of an employment contract at sale of practice?
- Does my retirement plan address where I will live? Keeping current residence or scaling down?
- Does my retirement plan address abrupt or gradual retirement?
- Does my retirement plan address all sources to be used for income at time of retirement?
- Does my retirement plan address the possibility of early retirement.
- Does my retirement plan address working longer and slowing down sooner?
- Is my plan understandable to ourselves and our loved ones?
- Am I utilizing all that the IRS will give me?
- Has "Time Sequence" for distribution been addressed?
- Do I need long term care? (Asset protection)
- Does my plan address the possibility of "Rising Taxes?"
Do you have a retirement plan or a retirement vehicle?
