Considering the Stretch IRA Rules After the SECURE Act.

As a financial and estate planning technique, the “stretch” IRA allowed the beneficiary of an inherited IRA to take distributions from the IRA over her remaining life expectancy, extending the life and income tax advantages (tax-deferred or tax free growth) of the IRA. For a very young beneficiary, this could have been a virtual lifetime. […]

Debtor has Student Loan Debt of $221,000 Discharged in Bankruptcy.

Navy veteran, Kevin Rosenberg, borrowed $116,000 in student loans from 1993 to 2004 to earn a bachelor’s degree and later a law degree. The loan amount ballooned to $221,000 by 2018, when he filed for Chapter 7 bankruptcy in New York. Mr. Rosenberg sought to have the student loan debt discharged in the bankruptcy because […]

The SECURE Act Becomes Law – How Will it Affect Your Financial and Estate Planning?

The SECURE Act, which passed the US House of Representatives last summer (2019), had been flying well below most people’s radar as it seemed to lose steam in the Senate, despite bipartisan support. However, quite surprisingly and with little fanfare, it was passed into law just before Christmas, and took effect January 1, 2020. In […]

Need to take an IRA RMD before the end of the year? Why not make a tax-avoiding QCD instead?

IRA owners must begin taking annual required minimum distributions (RMD) once they reach age 70½. An RMD is taxable as income for the year in which the RMD is taken. A lot of my clients dislike RMDs because they are a forced distribution – by law, an RMD must be taken after age 70½ whether […]

Working the System – Parents Giving Up Custody of Their Kids to Get College Financial Aid

Aunt Becky’s legal woes arose from her efforts to get her children into the University of Southern California. However, for many families, the problem isn’t getting their kids into a college of their choice, the problem is paying for it. Some enterprising parents in Illinois reportedly have given up custody of their children to help […]