The Milestone Update

Here is some important information about New IRA Rulings in 2009 1. Required Minimum Distributions for Retirement Account Owners are waived for 2009, ages 70+ for plan participants and beneficiaries. If you use your withdrawal for income, you can continue taking your withdrawals as usual, but you have a choice to stop your withdrawal this year. 2. Qualified Charity Rollovers are for 70 1/2 + are extended through 2009. You still canbenefit from using your IRA withdrawals for Qualified Charities in 2009, but it just will not satisfy a Required Minimum Distribution. If you make a charitable contribution anyway, you can still do it with IRA funds. 3. Roth Conversions: Your 2009 RMD amount can be converted to a Roth IRA. Theconversion income itself does not count towards the $100,000 income limit. 4. Federal Estate Tax Exemption increases from$2 million to $3.5 million. This change may help IRA owners to leave IRAs to other heirs such as children or grandchildren, free of Estate Tax. This increased exemption level provides challenges as well as opportunities. It is wise to meet with your financial advisor and attorney to work out this new increase.

What Questions are on People’s Minds in Today’s Economy?

1. Can most people afford another stock market year like 2008? Probably not. You hear from the media to buy and hold. What is wrong with that? If you are retired or are within 10-12 years of retirement, then you simply cannot afford to have your account drop by asignificant amount. The math only gets worse when you are retired and no longer contributing to your account. 2. Have you heard people talking about losing money in their retirement account portfolios? What do I do with my account if I have lost my job? My question is who is managing these accounts? We work with our clients who have these accounts to minimize loss and manage risk. 3. What important documents do I need to complete to protect my wishes for my health and my finances ? Is a will enough? Most people that visit my office do not know the importance of a Durable Power of Health, Durable Power of Attorney and Living Will and how to avoid probate by taking simple actions. 4. Can most people figure out how to minimize their taxes without seeking professional tax advice? 5. What do I need to do so I don’t lose everything if I ever have to go a nursing home? Are your parents, aunts, and uncles aware of the new Medicaid Laws and the important steps that they can take to protect their homes and assets? 6. Lastly, business owners have suffered greatly during this economic downturn. Do they know how to maximize their income, minimize taxes, and protect their business assets?

Any questions or concerns? Contact us: The Milestone Center 330-644-0284 or