Insurance spotlight: Two good options for retirement account required distributions

If the “deferred” stage of your tax-deferred retirement account has ended or will be ending soon, you’re probably learning about required minimum distributions (RMDs). In most cases, shortly after you reach 70 1/2 years of age, you must begin taking distributions from qualified retirement plans such as a 401(k) or an IRA. If you don’t take the minimum distribution the IRS requires, you could pay a penalty of 50% of the amount you should have withdrawn.
If you’ll be withdrawing at least the RMD amount each year to pay for living expenses, this isn’t an issue for you. You’ll pay your regular income tax rate on the distributed funds (unless they’re from a Roth IRA). However, if you have sufficient income from other sources, consider these options for putting your RMD money to good use:

Buy life insurance
Even up to age 80, you may be eligible to purchase a single premium whole life (SPWL) policy. As the name implies, you make one payment to purchase a death benefit that will be passed to the beneficiary. One advantage of an SPWL policy—as with any Knights of Columbus life insurance policy—is that the benefit will be paid tax-free to the beneficiary without being subject to the probate process. Also, as a whole life (also called “permanent” life) policy, cash value begins accumulating immediately. You can withdraw some of the accumulating cash value in certain circumstances, among other options.

Donate IRA funds to charity (tax-free for 2013 distributions)
If you donate funds from an IRA to a qualified charity in 2013, the donation is tax-free up to $100,000. This provision was set to expire in 2011, but it’s been extended through 2013—no guarantee it will continue beyond that, however. Generally, the distribution must be transferred directly from your IRA to the qualified charity. If you have questions about life insurance, IRAs and RMD options, please get in touch with me.

✦ This is not intended as legal or tax advice. Please see a qualified attorney or accountant to be sure you are properly managing your required minimum

Contact one of your Field Agents for more information:
Last Names A-L
Marc Newhouse
(972) 599-2803
(469) 767-0289-cell

Last Names M-Z
John Shaver
(817) 601-5421
(214) 449-9148-cell

Maximize your IRA

Now is a GREAT TIME to develop, review or start your retirement strategy, because an IRA plays a vital role in that strategy. Deadline for 2010 contributions is APRIL 18th. You and/or your wife can contribute up tp $5000.00 – or $6000.00 for age 50 and older. If you have an IRA elsewhere, think about moving it to the Knights of Columbus – we have NEVER lost a dime of your money on the investment Our interest rates are Guaranteed at a minimum of 3% if under $10,000 or 3 ¼ if 10,000 or better. Contact Tom Stelmar Sr at 972 771-5289 or tom.stelmar@kofc.org for all the details. Ask about our Long Term Care and Life Insurance rates – we are on the top of all companies in the United States, A++ Superior by AM Best and AAA Extremely Strong by Standard and Poors and also multiple “Best Practice” Citations from Insurance Marketplace Standards Association.

Estate Planning Seminar

Council 799, along with the Agency department of the Knights of Columbus, is hosting an Estate Planning Seminar at 7:00PM on December 9th, 2009 at the 799 Council Hall. We invite you, your spouse, family and friends to attend. We will be providing information on the preservation of your Estate, taxation, pre-planning, special needs, Long Term Care, gifting and probate. This seminar will be conducted by Knights of Columbus General Agent David De Anda FICF, CSA and Brother Knight Paul Wright, Attorney at Law and Certified Public Accountant. Our founder, Fr. Michael J. McGinvey, created this great organization to protect our families, widows and orphans. We continue his dream by providing you some of the very best products in the insurance industry plus valuable services such as this. Please plan on attending and learning more on how to take care of your love ones.