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IRA & ROLLOVER  QUESTIONS & ANSWERS

Our Registered Investment Advisors have the knowledge to get your rollover done correctly, on time and without tax consequences.

Here are answers to some basic IRA questions you need to know about your IRA...

Q?: Did you know that breaking the rollover rules could remove the tax deferral status from your IRA?

A: Yes, you can! It's a rule that you will want to pay special attention to, because an improper rollover can trigger a big tax bill. "Some people can lose their entire IRA because they broke the rollover rules and didn't realize it," according to Ed Slott, the author of The New Retirement Savings Time Bomb. Rise Financial Group is experienced in rollovers for Company 401(k)'s, Governmental 457 Plan's and Teacher's 403(b) plans. Don't make a dire mistake, let us show you what we can do for you!

Q?: Did you know that the Internal  Revenue Service (IRS) mandates that you start to take withdrawals from your IRA account once you reach 72* years old?

A: Yes, it is true, you can no longer continue the tax deferral of your IRA beyond age 72, unless you are still gainfully employed. You must start taking withdrawals, what are referred to as, Required Minimum Distributions (or, RMD's) at age 72 and continue to do so each year you are alive. As you age each year, the required amount (a percentage based on age), increases each year. Beyond your lifetime, a spouse must also continue your RMD's once they have been started. The Secure Act changed the "stretch IRA" ruling, removing that as an option, now a non-spouse beneficiary must chose options that withdraw the the IRA within 10 years following the death.

* In December of 2019, the SECURE Act made changes to the RMD start date. Due to those changes, if your 70th birthday is July 1, 2019 or later, you do not have to take withdrawals until you reach age 72. ROTH Ira do not require withdrawals until after the death of the owner.

 

Q?: Do you understand the risk that is created from these forced RMD withdrawals and how they may impact your IRA balance over time?

A: No, I did not realize there was a risk. Yes, the risk is called the Sequence of Returns Risk and this risk starts with those who continue with their IRA in an account that is invested too aggressively in the stock market, or an account that can produce a loss of assets, while taking income at the same time. In basic terms, the reduction each year from your IRA withdrawals, paired with a downturn in the market, could ultimately lead to running out of money before the end of your life. Taking the same amount of income from an account that is decreasing, creates a larger withdrawal percentage that your investment account eventually cannot manage. Our Investment Advisors can show you how to reduce the Sequence of Returns Risk associated with your IRA. In order to eliminate this risk, one option would be to implement our RMD Solutions program, this program is explained in depth HERE.

Q?: Do you know there are programs available that allow you to earn a reasonable amount of interest in addition to receiving a lifetime income for both you and your spouse? 

A: Yes, there is such a program! In fact, another risk that retirees face today is Longevity Risk. This risk is more evident today because we are living longer lives. In addition, a retirement just 25-30 years ago was rich with Social Security and a generous pension plan. Today's retirement is some Social Security and is also supplemented by individuals own savings programs like IRA's, 401(k)'s, 403(b)'s 457 plans, etc. Our Investment Advisors can show you how to increase your retirement income with our IRA Maximization Program. This program will not only satisfy your IRS RMD requirements every year, but it will nearly double what an RMD payment would be initially. This program is explained in depth HERE

Q?: I rolled over my 401k or IRA to a high-fee Indexed or Variable annuity, I am concerned about the high fees and the exposure to market risk, is there any other options for my annuity? 

A: Yes, Rise Financial Group offers an extensive Annuity Review using information provided by third-party company "Morningstar" as it relates to your annuity, i.e. fees, loads, charges, etc... Many people are aware of Morningstar for providing feedback and reviews of different stock and mutual fund options. This report will detail and breakdown each and every fee and expense associated with your annuity. There is no charge for this service because it has been so beneficial for many of our clients. In fact, we recently came across a client's Variable annuity with the highest amount of total fees we have ever seen, 5.14%!! (We have shared the details on the fees for you in the "Annuity Review" section of this website) The client was beyond mortified, as he was not told, nor was he aware that there were any fees or charges on the account, as they were not disclosed at time of purchase. Also, there is one other major point that Advisors don't tell you about (in this situation) Variable annuities, concerning lifetime income, that can lead to you having a $0 (Zero) balance even before you pass away. Contact us at (480) 878-7444 for details on what major item this is! For more information on the Annuity Review process, click HERE

Before you make the wrong rollover decisions which could create a costly tax situation, please click the button below to schedule a no-obligation appointment with a Registered Investment Advisor