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IRS Distribution Rules

We have developed a questionnaire that will help uncover the potential unfavorable tax time bombs in your retirement plan.    Click here to print it.

Are you aware that your spouse has special privileges in relation to your retirement account, but that those special privileges can be lost if it isn't set up right?
Tax Traps (and Opportunities)

Heard your friend took money out of her retirement plan for a certain need? Think you can do the same with no penalties? Maybe, maybe not. There are Federal rules and state rules. Some retirement plans are subject to Federal and some state and some both. Do you know which is which?

In a famous court case, a high powered lawyer got it wrong. He didn't realize there are differences and he didn't bother to find out the rules. He set up his plan using state law rules when the type of plan he had was subject to Federal rules. It cost his kids and grandkids their inheritance.

But yes, it's not all just about what is left over for the kids and grandkids. There are tons of court cases about living people blowing how they transferred money or did a distribution for themself. Sadly, but not surprisingly, the IRS and the courts often prove unforgiving. The court rules that ignorance is no excuse.

The other thing that trips people up is that there are IRS rules and then there are contractual rules that the custodian of your retirement plan imposes. The government has multiple sets of rules and most people unknowingly have their retirement plan set up under the default rules, which are unfavorable.

To make it worse, while the IRS allows you to opt out of the default rules and set your plan up under the more favorable tax rules, many plan custodians don't allow it because it is more hassle and expense for them to administrate your plan under the more favorable rules.

Click here to open and print a questionnaire that will uncover the potenital unfavorable tax traps in your retirement plan!

In addition there are many wonderful opportunities that can help you save money on taxes if you have the right situation. Here are some opportunities and tax traps we'd love to tell you about:
  • Federal CSRS employees have a special retirement plan tax break that is little known but huge.
  • How to get a tax break if you have company stock in your retirement plan.
  • Crucial information on what you should know if participating in a Designated Roth Account through your employer.
  • What you absolutely must do before touching or changing anything with inherited retirement plans.
  • 2nd marriage planning so if you die, the money goes where you want it to go.
  • What you should do and also must not do if you are nearing age 70 1/2 (required minimum distribution age).
  • What the consequences are if you named a will, trust, or a charity as a beneficiary of your retirement plan.
  • How to get a big tax break if you have after-tax money in your retirement plan (money contributed that you didn't get a deduction for, but not including a Roth IRA).
  • What the consequences to your retirement plans are if you have switched jobs.
  • What immediate steps need to be taken if you just retired or will be retiring soon.

Call us for an appointment!

Phone: (909) 790-8622

Main Office
PGA Financial PGA Financial
34455 Yucaipa Blvd. Suite 209
Yucaipa, CA 92399

Serving Yucaipa, Calimesa, Mentone, Redlands, Banning, Beaumont, Cherry Valley, Highland, Loma Linda, Bryn Mawr, Grand Terrace, San Bernardino, Moreno Valley, San Jacinto, Bloomington, Colton, Fontana, Riverside, Rialto, Big Bear Lake, Hemet, Inland Empire, Forest Falls, Angelus Oaks, Skyforest, Rimforest, Running Springs, Twin Peaks, Lake Arrowhead, Fawnskin, and points beyond in California.

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