Take-Away: The IRS just extended the deadline when qualified plans must be amended to reflect changes required by the SECURE Act and the CARES Act. Background: On August 3, 2022 the IRS released Notice 2022-33. That Notice provides an extension for qualified plans to adopt amendments under the SECURE Act. The Notice also addresses the […]

Take-Away: Sometimes we make the erroneous assumption that the named co-owner of a joint bank account is entitled to the account balance on the other co-owner’s death. That statutory presumption can, at times, be rebutted with evidence that no survivorship principles were intended when the joint account is opened. Background: Michigan has several different statutes […]

Take-Away: Cryptocurrency can be held in an IRA. But should they be a viable IRA investment? Background: A few months back, the Department of Labor expressed some concern in one of its publications with regard to holding cryptocurrency in a qualified retirement account. More recently, Fidelity Investments made the news by announcing that it would […]

Take-Away: The SECURE Act Proposed Regulations are effective beginning in 2022. Whether we like these new rules or not, they must be followed, even when the Regulations are not yet final. The Proposed Regulations provide for complex, aka confusing, distribution rules, and also some needed flexibility when it comes to ‘fixing’ see-through trusts. Background: As […]

Take-Away:  Accessing a retirement account funds without a penalty, other than an IRA, is possible at age 55 years, but only if there has been a separation from service. However, this rule is often misunderstood. Background: One of the exceptions to the 10% penalty for early withdrawals from a retirement plan account is the rule […]

Take-Away: There are occasions, albeit infrequent, when a QTIP Trust for a surviving spouse creates difficulties when the spouse-beneficiary dies. There are few options to consider if the decision is made to exit a QTIP Trust, but each carries its own unique tax implications. Background: A QTIP Trust for a spouse defers federal estate taxes […]

Take-Away: The Michigan Court of Appeals recently held that a wife’s dower interest (now repealed) only placed a cloud on the title to her husband’s real estate. The absence of the wife’s release of her dower interest in the deed did not void her husband’s deed. Background: A wife’s dower interest in real estate owned […]

Take-Away: For those interested in establishing a Roth IRA to save income taxes in their future retirement years, they might want to consider a reverse rollover to move after-tax contributions to a Roth IRA with little, or no, income tax consequences. Note: This is a ‘refresher’ summary of an earlier missive on reverse rollovers to […]

Take-Away: As small business owners seek to avoid capital gains when they decide to sell their business, they first need to determine if their stock qualifies as small business stock, as the tax savings can be significant. Background: The Tax Code contains a provision that creates an incredible opportunity to avoid capital gain recognition for […]

Take-Away: In order to save state income taxes, make a qualified charitable distribution from an inherited IRA, if one is available. Background: An inherited traditional IRA, or an inherited Roth IRA, can be the source of a qualified charitable distribution (QCD). The QCD will be reported as a death distribution. And like a QCD from […]