If you have worked and managed to save large balances in retirement plans it is imperative that you properly plan for the assets to pass to named beneficiaries in order to minimize taxes. Generally the beneficiaries of retirement plans will be either your heirs or spouse. If the spouse is named the beneficiary then he or she has the option of rolling over the balance into his or her own Individual Retirement Account. If the children or heirs are the beneficiaries they do not have this option. In this article we will generally discuss retirement benefits and the inheritance issues that are posed to beneficiaries. An elder law attorney such as Austin lawyer Farren Smith can guide you through this complicated area of the law.
Overview of Retirement Plans
There are many types of retirement plans that individuals can implement to maximize savings and minimize current income tax consequences. Generally, these plans include:
- Individual Retirement Accounts (IRA’s)
- 403(b) plans
- 457(b) plans
- Money Purchase Plans
- Profit Sharing Plans
Typically these plans are either started by individuals or provided by a company that employs the individual.
If you have earned retirement benefits and have questions, contact our offices to speak with an experienced lawyer.