36 The QUEE NS Courier • business • december 19, 2013 for breaking news visit www.queenscourier.com ▶business ▶The Elder Law Minute TM Be Wise about IRA Beneficiary Designations By Ronald A. Fatoullah, Esq. and Debby Rosenfeld, Esq. IRAs are often a significant component of an individual’s total estate. During his/her lifetime, the owner of an IRA has the ability to designate one or more beneficiaries on a beneficiary designation form. If completed properly, this beneficiary designation allows for the IRA to pass to the beneficiary upon the owner’s death without having to go through the probate process. Furthermore, designating an appropriate beneficiary can lead to positive tax consequences for the beneficiaries. Accordingly, it is crucial that the beneficiary designation be completed accurately and correctly. In most instances, it is unwise to name one’s estate as the beneficiary of an IRA because this might nullify any inherent income tax benefits. A traditional IRA is comprised entirely of pre-taxed dollars. During their working years, people are given an incentive to set aside money for their later years. Individuals are encouraged to save money by making deposits of pre-taxed dollars into an IRA with the understanding that when they do eventually withdraw these funds, they will probably be in a lower income tax bracket. When the ultimate beneficiary of an IRA liquidates the account, the entire amount is subject to income taxation. Some individuals will simply name their respective spouses as beneficiary of their IRAs. If the beneficiary is a surviving spouse, elder law ROnald Fatoullah, ESQ, CELA* he/she can arrange for the IRA to be rolled over into his/ her IRA or one of his/her existing IRAs, thereby minimizing the income tax bite. Upon reaching the age of 70 ½ years, the surviving spouse is required to begin taking distributions from the rolled over IRA, and the distributions are based on his/her life expectancy. When an individual other than a spouse is designated as beneficiary on any IRA, he/she can elect to take distributions over his/her own life expectancy. This essentially permits the beneficiary to “stretch out” the inherited IRA over the course of his/her respective lifetime, which allows for further growth and is beneficial from a taxation point of view. When multiple beneficiaries are named, the life expectancy of the oldest beneficiary will typically be utilized in computing the annual required distributions. Sometimes the owner of an IRA may not wish to name an individual as the direct beneficiary of the account. Reasons may range from the beneficiary being a minor or being disabled to the beneficiary being unable to handle money efficiently. In such a case, the owner may wish to designate a trust as beneficiary. Provided the trust satisfies certain criteria, it can be named as beneficiary and certain controls will be put into place. Failure to properly name a beneficiary on an IRA can sometimes lead to unintended results. Therefore, it behooves all individuals to review all of their retirement assets in great detail and make sure that beneficiaries are properly designated. A great deal of time, aggravation and money can be saved by doing so. Ronald A. Fatoullah, Esq. is the principal of Ronald Fatoullah & Associates, a law firm that exclusively concentrates in elder law, estate planning, Medicaid planning, guardianships, estate administration, trusts and wills. The firm has offices in Forest Hills, Great Neck, Manhattan, Brooklyn, and Cedarhurst, NY. This article was written with the assistance of Debby Rosenfeld, Esq., a senior staff attorney at the firm. Ronald Fatoullah & Associates can be reached by calling (718) 261-1700, 516-466-4422, or toll free at 1-877-ELDER-LAW or 1-877-ESTATES. Ridgewood Savings launches mobile check deposit Ridgewood Savings Bank has announced the introduction of mobile check deposit as an enhancement to its mobile banking platform. The service is now available to all Ridgewood customers with active checking or money market accounts using an iPhone or Android smart phone. Mobile check deposit provides customers with the ability to deposit checks into their checking account utilizing the camera on their iPhone or Android smart phone. The service is free and saves a trip to a branch to deposit a check. “The addition of this mobile banking feature will better serve the needs of our customers and strengthen the competitiveness of our mobile banking product,” said Walter Reese, Senior Vice President, Retail Banking, Ridgewood Savings Bank. “Our customers have already expressed enthusiasm about their ability to bank more efficiently.” To get started, users download or update to the current version of the Ridgewood Savings Bank iPhone or Android App. After accepting the agreement and receiving approval for the service, simply log in to Mobile Banking TAP Deposits from the main menu, SNAP a picture of the front and back of the check, then the deposit is made to your account. Ridgewood Savings Bank Mobile Banking is a free service for customers that provides a convenient and secure way to manage transactions. Options include: • Text Banking with Alerts • Mobile Browser with Bill Pay • Downloadable Apps, including Bill Pay and the new Mobile Check Deposit feature More info is available by visiting a local branch of Ridgewood Savings Bank or calling 718-240-4778. USA Tutoring: Fostering Unlimited Student Achievement Founded on the belief that all students have the ability to succeed, USA Tutoring provides the one-on-one attention that is often not available in a classroom setting. If the classroom tends to be a distracting and unfulfilling learning environment for your child, then consider a meeting with the professionals at USA Tutoring to learn how the unique program removes the distractions and obstacles from teaching. After a thorough evaluation process, each student is paired with a tutor that is best suited to cater to his or her specific BUSINESS in the NEWS needs. The result is a supplemental learning experience that focuses on your child’s unique strengths and weaknesses. USA Tutoring offers programs in test preparation for big exams, organizational skills, including time management and creating an optimal study environment, and individual subject matter. To provide your child with a strong educational foundation from the start, USA Tutoring offers a pre-kindergarten program that prepares children for the basic skills they are expected to know upon entering kindergarten, such as following directions, basic reasoning, proper use of language and appropriate social behavior. Throughout the tutoring process, each USA Tutoring student is evaluated on an ongoing basis so that tutors and parents can gage his or her progress and further tailor the curriculum to meet the student’s needs. Because the ultimate goal is to boost the students’ confidence through education, the USA Tutoring team works hard to ensure that students are not just being coached in their current curriculum, but are also learning skills and tools that they can carry with them for future success at all levels of their education. USA Tutoring 516-809-9538 www.usatutoringny.com
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