Arranged by topic, this book offers comprehensive treatment not only of typical distribution subjects like the minimum distribution rule and Roth IRAs but also discusses many of less understood areas, such as Income in Respect of a Decedent (IRD), the Retirement Equality Act of 1984 (REA), the treatment of non-citizen spouses, trusts as beneficiaries of retirement plans, charitable giving as it relates to retirement accounts, disclaimer and grandfather rules, to name just a few. The detailed table of contents, combined with the index, allows practitioners to find the information they need in short order.
For example, the chapter on non-citizen spouses not only discusses the tax issues that arise when an account holder's spouse is a non-citizen, it examines four alternative strategies for dealing with the dilemma. Also discussed are some of the tricky situations that can arise as a result of selecting one of the strategies, like the deferred estate tax on principal distributions with regard to a QDOT-IRT.
There is a detailed explanation of Section 72(t), the "series of substantially equal periodic payments" exception to the 10% penalty on pre-age 59 1/2 distributions from a tax-deferred retirement account. Natalie Choate fully explains the three safe-harbor methods (RMD, amortization, and annuitization) and discusses how to properly structure and execute 72(t) distributions. This section has been updated to reflect IRS Revenue Ruling 2002-62, which, among other things, provides taxpayers for the first time with a method to legally alter a series of 72(t) payments without incurring dire consequences.
Life and Death Planning for Retirement Benefits is not a book you read and then relegate to the bookshelf. It is a hands-on user's guide that every practitioner advising clients on retirement distributions should keep within easy reach for frequent referencing. With the demand for distribution planning advice on the rise, this is one book you cannot afford to be without.
Joel P. Bruckenstein, CFP, is co-author of the book Virtual Office Tools for the High-Margin Practice: How Client-Centered Financial Advisers Can Cut Paperwork, Overhead, and Wasted Hours. (See www.virtualofficetools.net for ordering information.)