November 6, 2025 • 27 mins
#SafeMoney #JonHeischmanSr #TaxEfficientDistributions #TooManyAccount
In this week's episode host Jon Heischman, Senior takes on two interrelated topics of tax efficient distributions from your retirement accounts and having too many accounts.
Call Jon at (888) 426-0177 with questions, comments or to get a free copy of Top 10 IRA Mistakes and How to Avoid Tax Traps. Visit www.heischmanfs.com/ for additional information
In this week's episode host Jon Heischman, Senior takes on two interrelated topics of tax efficient distributions from your retirement accounts and having too many accounts.
Call Jon at (888) 426-0177 with questions, comments or to get a free copy of Top 10 IRA Mistakes and How to Avoid Tax Traps. Visit www.heischmanfs.com/ for additional information
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
People really don't know what their expenses will because they
don't know how long that they're going to live.
Speaker 2 (00:06):
The Americans are worried they won't have enough safe for retirement.
Now more than ever, retirement's going to cost for many
folks over a million dollars.
Speaker 1 (00:14):
He is no short thing in investing, but a lot
of people think that annuities may come close to that.
Speaker 2 (00:19):
It's going to more safe, safe, safe, safe things that
they know.
Speaker 3 (00:22):
If they know they're going to need that money to
supplement the retirement, well then you can't play that rest.
Speaker 4 (00:27):
This is the Safe Money and Retirement Show. But John
Heischman senior founder and partner of Heisman Financial Services serving
the Columbus and surrounding areas. John specializes in educating pre
retirees and retirees about safe money strategies and ideas. Now
it's the Safe Money and Retirement Show. Here's John Heischman, Senior.
Speaker 2 (00:48):
In retirement planning. We have to address the importance of
tax efficient distribution. Welcome to the Safe Money and Retirement Show.
I'm your host, John Heischmann. I want to talk about
that because it's very important and many times overlooked. Although
(01:16):
individuals will no longer incur payroll taxes in retirement. It's
important to consider that most assets have liabilities associated with
them upon distribution, and these taxes may be significant. So
(01:41):
as a retirement planner, I need to be able to
help clients determine how to best incur these liabilities over time.
I have to apply careful planning that can reduce these
over all tax burdens, therefore increasing the value of the
(02:06):
assets that are going to remain in those accounts because
they're going to be needed later on in retirement. This
should always be the goal maximizing after tax dollars. Where
(02:26):
individuals invest their assets, whether it's intaxable or tax deferred
or tax free accounts, and in the order in which
these assets are distributed, can have a significant impact on
(02:46):
the amount of after tax income generated and in turn
on a portfolio's longevity. Most research points to the benefits
of assessing retirement assets in a specific order. It's kind
(03:10):
of a three step process and could vary depending on
where a retiree's accounts are, meaning is the money in
taxable accounts or tax deferred accounts and number three tax
(03:31):
exempt accounts. I want to break down each of these
to give you a better idea so you can be
thinking of where your money is in which type of
these accounts? First, taxable accounts, taxable savings accounts, and although
(03:58):
the individual will need to sell investments might have to
pay capital gains tax on any appreciation if you held
the investment for longer than a year, they're going to
be taxed at long term capital gains rates, which are
(04:21):
significantly less than ordinary income tax rates. Also, using their
taxable assets first allows their tax advantaged accounts to continue
growing tax deferred very important. Number two. Withdrawal from tax
(04:50):
deferred accounts in this category could be I erase annuities
in qualified retirement plans. And Third, withdrawal from tax exempt
retirement accounts such as a ROTH ira or if you
(05:11):
have a four one K this will work qualified withdrawals
from WROTH accounts. They're not going to be taxed as
most of you know, which makes them valuable later in retirement. Also,
WROTH accounts can be used in state planning because beneficiaries
(05:34):
won't owe income tax on distributions. This order of distribution
is thought to be the best as it taps the
least tax favored assets first while retaining benefits of tax
deferral for as long as possible. We also have to
(05:58):
keep in mind longevity, making sure the money is going
to last the rest of your life. Growth is so
important for the money sitting in those accounts that are
paying income to provide income later. To help solve that
(06:20):
longevity problem. What I like to do is help direct
these concepts to make sure you're in that position or
make some adjustments that's going to help you achieve tax
efficient distributions eight eight four to two six zero one
(06:47):
seven seven. That number again is triple eight four to two,
six zero one seven to seven. I'd like to hear
your feedback, your questions, your concerns, and possibly provide advice
for you on tax efficient distributions. And don't forget the
(07:13):
taxation becomes even more complex when we consider other issues
such as the taxation of social security benefits. And if
your social security is susceptible to taxation, that's where I
want to make sure it's included in designing the income plan.
Speaker 5 (07:38):
Now.
Speaker 2 (07:38):
Earlier I mentioned the longevity problem because the majority of
retirees fear running out of money in retirement more so
than they fear death. Regardless of the distribution method that
(08:00):
chosen strategies that I've discussed here are designed to eliminate
that worry when you have definite distribution plans is also
going to give more confidence and be able to obtain
(08:21):
financial independence. And also keep in mind that income strategies
they're not a one size fits all. The bottom line
here is that you need to integrate approaches and use
different products to create an efficient retirement income plan. I
(08:46):
determine whether the goals of a client are asset longevity,
wealth transfer or possibly a combination of those two. After
considering your needs, I can then identify which of the
(09:08):
available decumulation strategies are best suited and to meet your
needs and the right decision. It's dependent on a number
of variables such as interest rate, stock prices, assumptions regarding inflation,
(09:32):
your future income needs, and also life expectancy. Perhaps most importantly,
I must help each retiree by monitoring the chosen plan
as they move forward in retirement. Very important to track
(09:55):
changes in lifestyle, each individual's goal and make changes to
the plan if necessary. Attention must be made to changes
such as higher than projected levels of spending may need
to be discussed with each retiree and help them understand
(10:18):
the risk associated with depleting assets before a certain age.
Speaker 3 (10:26):
I know.
Speaker 2 (10:27):
I always try and keep my clients informed of changes
that effect their current retirement plan, not only on the
short term, but also on a long term basis, and
how those implications may change, allowing them to make necessary
(10:49):
adjustments to put the plan back on track. Then, if necessary,
modify the plan, and if not, continue with the plan
and review again in the future. I think the plan
should be reviewed once a year during an annual meeting.
(11:14):
What's working today doesn't necessarily mean it's going to be
working in the future because of taxes, healthcare costs, and inflation.
Before I take a break, I want to give you
my number once again. It's eight eight eight four two
(11:36):
six zero one seven seven. I'll repeat that triple eight
four two six zero one seventy seven. Visit my website,
which is Heishmann FS dot com, h EI, s cch
(11:58):
M A n FS dot com. Any information you'd like
to have you can call that number as well. Maybe
it's social Security, maybe it is a Roth conversion. Let
me know. I'll get information out to you. Any pamphlets,
(12:23):
any books that will help your concerns and make another
step towards a more secure retirement. Stay tuned for the
second part of the Safe Money and Retirement Show. I'll
give you some more ideas and things to think about
(12:44):
after the break.
Speaker 3 (12:47):
Thanks for listening to The Safe Money and Retirement Show
with John Heisman. For more information, call one eight eight
eight or two six zero one seventy seven. That's one
eight eight eight or two six zero one seven seven,
or visit their website at heismanfs dot com. More of
the Safe Money and Retirement Show in a moment.
Speaker 1 (13:14):
The goals of good retirement planning are to help each
individual to end up with more money at the end
of the day, but also provide more income during retirement,
and this creates a less stressful investment experience, Especially in
(13:37):
times like this, I like to emphasize and stress stronger
financial understanding. Not only could you have greater wealth, more income,
and a better night's sleep, you should also have a
stronger grasp of your own financial standing. With a strong
(14:03):
retirement plan in place, you're going to know exactly what
you can withdraw from your retirement accounts every month, how
much you need to live comfortably, and how long your
savings is going to last. This is John Heischman, your
(14:23):
host with the Safe Money and Retirement Show. Eight eight
eight or two six zero one seven seven, triple eight
or two six zero one seven seven.
Speaker 3 (14:43):
Welcome back to the Safe Money and Retirement Show with
John Heischman. To contact John, the number to call is
one eight eight eight or two six zero one seven seven.
That's one eight eight eight or two six zero one
seven seven. Once again, here's John Heisman.
Speaker 2 (15:00):
Welcome back to the second part of the Safe Money
in Retirement Show. I'm your host, John Heischmann. Let's talk
about the problem of having too many plans, because most
retirees do not have a single retirement plan. They have
(15:21):
several one or two maybe more iras, possibly a profit
sharing plan, maybe a defined benefit plan. How do you
calculate the required minimum distribution given the fact that eventually
(15:43):
you're going to have to take distributions from all of
these qualified plans. And here's where you have to be careful,
because the more plans you have where you have to
take minimum distributions, the more potential for a problem. They're
(16:05):
easy to miss, and as you may know, there is
a heavy tax if you miss that RMD in a
given year. What I like to do is have my
clients are mds set up on what we call a
(16:25):
systematic RMD each year, whether it's paid annually and by
the way, November is the largest month for rmds to
be paid out, but whether it's annually, quarterly or monthly
for income, I have the company set it up systematically.
(16:51):
So each year we let the company figure how much
you have to take, because it does vary from year
to year. What that does it relieves the liability on
my clients as well as myself and we let the
(17:12):
companies handle that. Because a lot of these.
Speaker 5 (17:16):
Companies will have a whole separate required minimum distribution department,
there could be ten to fifty employees just in that department,
so that'll solve that problem.
Speaker 2 (17:32):
Now, the IRS will allow a certain amount of aggregation,
but only so much. Each iras required minimum distribution has
to be calculated separately. The total required minimum distribution can
(17:53):
be taken from any one or several of those iras.
The same aggregation rule applies to a four to H
three B plan. Every other type of employer plan must
individually make an RMD. In other words, distributions from employer
(18:18):
plans must be calculated on each plan and withdrawn from
that plan. What happens if you're one of those retirees
are getting ready to retire, and we're designing an income
plan and we're looking forward to the time that you're
going to have to take those required minimum distributions. You
(18:43):
may have three iras, a four to oh one K
plan from a previous employer, maybe a four to three
B from your current employer. Sounds like a good problem
to have, doesn't it, But it can potentially create a
(19:03):
big problem in the future. Many individuals at retirement or
prior will combine retirement accounts, and by doing this it
really simplifies and eliminates those potential problems because now you
(19:24):
might have one IRA and one for a one K.
Of course that for a one K needs to be
ruled over to an IRA. I see a lot of
individual retirement accounts iras that are older contracts in annuities.
(19:48):
They are outdated, they don't provide the guaranteed lifetime income benefits,
and the interest rates may be low. So when I
talk about combining i ra's, these annuities can be combined
(20:09):
into one which is up to date with the potential
for more growth, and you can include the guaranteed lifetime
income benefit. So what I have to do is to
review those contracts and if you're thinking of combining them,
(20:33):
I've got to make sure it is in your best
interest to replace those into one new annuity contract. The
other thing I don't want to forget about that the
new contracts could also include some long term care benefits,
(20:56):
which of course is recommended in the retirement plan. And again,
if it's in the client's best interest to make that
move to combine multiple annuities into an updated annuity, it
could work in It's something that you really need to
(21:18):
look into for those of you that have multiple contracts,
and let me know. I'd be happy to do an
annuity review, see where you're at and if there's potential
for bringing those accounts up to date, which could be
better for you. Eight eight eight four two six zero
(21:41):
one seven seven again triple eight four to two six
zero one seventy seven. Okay, I want to go back
and give you an example of a potential problem with
required minimum distributions that I had been discussing. So let's
(22:06):
call this individual Frank. He has three iras a profit
sharing plan in his company's defined benefit plan. So after
figuring the RMD for each of the iras, he can
take a distribution from one, two, or all three as
(22:32):
long as it matches or exceeds the required minimum distribution
for the total of all three. Then we always have
the problem of who's going to figure what the minimum
is that that individual has to take. And it gets
(22:53):
a little bit more detailed, but it can be done
taking just one RMB which will satisfy all three of
those contracts. Now, don't forget there's a couple other plans
that Frank has and he must take rmds from each
of those other plans. He cannot aggregate plans when he
(23:18):
makes the RMD calculation, nor can he take a single
distribution from one or two of those plans. So the
importance of getting it right and how this can be
a little bit complicated can't be stressed enough. And that's
(23:41):
why I want to make sure my clients are doing
it right and doesn't put them in a bad tax
and or penalty situation. Another problem is, let's call this
person Steve. He missed a required minimum distribution because he
(24:01):
withdrew less than what the minimum was. His penalty for
taking two little amounted to a pretty substantial amount. Therefore
he'll have to make that up and also take the
(24:21):
minimum the correct amount the next year. Here's another real problem.
So the point is let's get it done right, not
only the first year, but every year thereafter. Again, as
(24:42):
I said earlier, I'd like to have the companies where
those accounts are figure the RMD each year. Therefore the
liability is on them. And I got to tell you,
in my many years in practice, I can't recall where
(25:08):
a company had miscalculated the RMD for a client. For
those of you that this applies to, or will make
sure these distributions are set up correctly and eliminate the
(25:29):
potential for airs, taxes and penalties by possibly combining these
qualified accounts into one or two. I welcome the opportunity
to talk to you about your potential problem as well
(25:49):
as combining those older annuities that you have eight eight
eight four two six zero one seven seven triple eight
four two six zero one seventy seven. As always, I
appreciate you joining me. My goal is to give you
(26:12):
ideas for a better, safer and more secure retirement plan.
Speaker 4 (26:21):
The Safe Money and Retirement Joe John Heisman Senior to
get in touch with John. Call one AA eight four
two six zero one seven seven. That's one triple eight
four two six zero one seven seven. For more information
about Heisman Financial Services, visit their website heisman fs dot com.
(26:42):
That's h E I S C H M A n
f S dot com. Join us again next time for
the Safe Money and Retirement Joe with John Heisman Senior
People really don't know what their expenses will because they
don't know how long that they're going to live.
Speaker 2 (00:06):
The Americans are worried they won't have enough safe for retirement.
Now more than ever, retirement's going to cost for many
folks over a million dollars.
Speaker 1 (00:14):
He is no short thing in investing, but a lot
of people think that annuities may come close to that.
Speaker 2 (00:19):
It's going to more safe, safe, safe, safe things that
they know.
Speaker 3 (00:22):
If they know they're going to need that money to
supplement the retirement, well then you can't play that rest.
Speaker 4 (00:27):
This is the Safe Money and Retirement Show. But John
Heischman senior founder and partner of Heisman Financial Services serving
the Columbus and surrounding areas. John specializes in educating pre
retirees and retirees about safe money strategies and ideas. Now
it's the Safe Money and Retirement Show. Here's John Heischman, Senior.
Speaker 2 (00:48):
In retirement planning. We have to address the importance of
tax efficient distribution. Welcome to the Safe Money and Retirement Show.
I'm your host, John Heischmann. I want to talk about
that because it's very important and many times overlooked. Although
(01:16):
individuals will no longer incur payroll taxes in retirement. It's
important to consider that most assets have liabilities associated with
them upon distribution, and these taxes may be significant. So
(01:41):
as a retirement planner, I need to be able to
help clients determine how to best incur these liabilities over time.
I have to apply careful planning that can reduce these
over all tax burdens, therefore increasing the value of the
(02:06):
assets that are going to remain in those accounts because
they're going to be needed later on in retirement. This
should always be the goal maximizing after tax dollars. Where
(02:26):
individuals invest their assets, whether it's intaxable or tax deferred
or tax free accounts, and in the order in which
these assets are distributed, can have a significant impact on
(02:46):
the amount of after tax income generated and in turn
on a portfolio's longevity. Most research points to the benefits
of assessing retirement assets in a specific order. It's kind
(03:10):
of a three step process and could vary depending on
where a retiree's accounts are, meaning is the money in
taxable accounts or tax deferred accounts and number three tax
(03:31):
exempt accounts. I want to break down each of these
to give you a better idea so you can be
thinking of where your money is in which type of
these accounts? First, taxable accounts, taxable savings accounts, and although
(03:58):
the individual will need to sell investments might have to
pay capital gains tax on any appreciation if you held
the investment for longer than a year, they're going to
be taxed at long term capital gains rates, which are
(04:21):
significantly less than ordinary income tax rates. Also, using their
taxable assets first allows their tax advantaged accounts to continue
growing tax deferred very important. Number two. Withdrawal from tax
(04:50):
deferred accounts in this category could be I erase annuities
in qualified retirement plans. And Third, withdrawal from tax exempt
retirement accounts such as a ROTH ira or if you
(05:11):
have a four one K this will work qualified withdrawals
from WROTH accounts. They're not going to be taxed as
most of you know, which makes them valuable later in retirement. Also,
WROTH accounts can be used in state planning because beneficiaries
(05:34):
won't owe income tax on distributions. This order of distribution
is thought to be the best as it taps the
least tax favored assets first while retaining benefits of tax
deferral for as long as possible. We also have to
(05:58):
keep in mind longevity, making sure the money is going
to last the rest of your life. Growth is so
important for the money sitting in those accounts that are
paying income to provide income later. To help solve that
(06:20):
longevity problem. What I like to do is help direct
these concepts to make sure you're in that position or
make some adjustments that's going to help you achieve tax
efficient distributions eight eight four to two six zero one
(06:47):
seven seven. That number again is triple eight four to two,
six zero one seven to seven. I'd like to hear
your feedback, your questions, your concerns, and possibly provide advice
for you on tax efficient distributions. And don't forget the
(07:13):
taxation becomes even more complex when we consider other issues
such as the taxation of social security benefits. And if
your social security is susceptible to taxation, that's where I
want to make sure it's included in designing the income plan.
Speaker 5 (07:38):
Now.
Speaker 2 (07:38):
Earlier I mentioned the longevity problem because the majority of
retirees fear running out of money in retirement more so
than they fear death. Regardless of the distribution method that
(08:00):
chosen strategies that I've discussed here are designed to eliminate
that worry when you have definite distribution plans is also
going to give more confidence and be able to obtain
(08:21):
financial independence. And also keep in mind that income strategies
they're not a one size fits all. The bottom line
here is that you need to integrate approaches and use
different products to create an efficient retirement income plan. I
(08:46):
determine whether the goals of a client are asset longevity,
wealth transfer or possibly a combination of those two. After
considering your needs, I can then identify which of the
(09:08):
available decumulation strategies are best suited and to meet your
needs and the right decision. It's dependent on a number
of variables such as interest rate, stock prices, assumptions regarding inflation,
(09:32):
your future income needs, and also life expectancy. Perhaps most importantly,
I must help each retiree by monitoring the chosen plan
as they move forward in retirement. Very important to track
(09:55):
changes in lifestyle, each individual's goal and make changes to
the plan if necessary. Attention must be made to changes
such as higher than projected levels of spending may need
to be discussed with each retiree and help them understand
(10:18):
the risk associated with depleting assets before a certain age.
Speaker 3 (10:26):
I know.
Speaker 2 (10:27):
I always try and keep my clients informed of changes
that effect their current retirement plan, not only on the
short term, but also on a long term basis, and
how those implications may change, allowing them to make necessary
(10:49):
adjustments to put the plan back on track. Then, if necessary,
modify the plan, and if not, continue with the plan
and review again in the future. I think the plan
should be reviewed once a year during an annual meeting.
(11:14):
What's working today doesn't necessarily mean it's going to be
working in the future because of taxes, healthcare costs, and inflation.
Before I take a break, I want to give you
my number once again. It's eight eight eight four two
(11:36):
six zero one seven seven. I'll repeat that triple eight
four two six zero one seventy seven. Visit my website,
which is Heishmann FS dot com, h EI, s cch
(11:58):
M A n FS dot com. Any information you'd like
to have you can call that number as well. Maybe
it's social Security, maybe it is a Roth conversion. Let
me know. I'll get information out to you. Any pamphlets,
(12:23):
any books that will help your concerns and make another
step towards a more secure retirement. Stay tuned for the
second part of the Safe Money and Retirement Show. I'll
give you some more ideas and things to think about
(12:44):
after the break.
Speaker 3 (12:47):
Thanks for listening to The Safe Money and Retirement Show
with John Heisman. For more information, call one eight eight
eight or two six zero one seventy seven. That's one
eight eight eight or two six zero one seven seven,
or visit their website at heismanfs dot com. More of
the Safe Money and Retirement Show in a moment.
Speaker 1 (13:14):
The goals of good retirement planning are to help each
individual to end up with more money at the end
of the day, but also provide more income during retirement,
and this creates a less stressful investment experience, Especially in
(13:37):
times like this, I like to emphasize and stress stronger
financial understanding. Not only could you have greater wealth, more income,
and a better night's sleep, you should also have a
stronger grasp of your own financial standing. With a strong
(14:03):
retirement plan in place, you're going to know exactly what
you can withdraw from your retirement accounts every month, how
much you need to live comfortably, and how long your
savings is going to last. This is John Heischman, your
(14:23):
host with the Safe Money and Retirement Show. Eight eight
eight or two six zero one seven seven, triple eight
or two six zero one seven seven.
Speaker 3 (14:43):
Welcome back to the Safe Money and Retirement Show with
John Heischman. To contact John, the number to call is
one eight eight eight or two six zero one seven seven.
That's one eight eight eight or two six zero one
seven seven. Once again, here's John Heisman.
Speaker 2 (15:00):
Welcome back to the second part of the Safe Money
in Retirement Show. I'm your host, John Heischmann. Let's talk
about the problem of having too many plans, because most
retirees do not have a single retirement plan. They have
(15:21):
several one or two maybe more iras, possibly a profit
sharing plan, maybe a defined benefit plan. How do you
calculate the required minimum distribution given the fact that eventually
(15:43):
you're going to have to take distributions from all of
these qualified plans. And here's where you have to be careful,
because the more plans you have where you have to
take minimum distributions, the more potential for a problem. They're
(16:05):
easy to miss, and as you may know, there is
a heavy tax if you miss that RMD in a
given year. What I like to do is have my
clients are mds set up on what we call a
(16:25):
systematic RMD each year, whether it's paid annually and by
the way, November is the largest month for rmds to
be paid out, but whether it's annually, quarterly or monthly
for income, I have the company set it up systematically.
(16:51):
So each year we let the company figure how much
you have to take, because it does vary from year
to year. What that does it relieves the liability on
my clients as well as myself and we let the
(17:12):
companies handle that. Because a lot of these.
Speaker 5 (17:16):
Companies will have a whole separate required minimum distribution department,
there could be ten to fifty employees just in that department,
so that'll solve that problem.
Speaker 2 (17:32):
Now, the IRS will allow a certain amount of aggregation,
but only so much. Each iras required minimum distribution has
to be calculated separately. The total required minimum distribution can
(17:53):
be taken from any one or several of those iras.
The same aggregation rule applies to a four to H
three B plan. Every other type of employer plan must
individually make an RMD. In other words, distributions from employer
(18:18):
plans must be calculated on each plan and withdrawn from
that plan. What happens if you're one of those retirees
are getting ready to retire, and we're designing an income
plan and we're looking forward to the time that you're
going to have to take those required minimum distributions. You
(18:43):
may have three iras, a four to oh one K
plan from a previous employer, maybe a four to three
B from your current employer. Sounds like a good problem
to have, doesn't it, But it can potentially create a
(19:03):
big problem in the future. Many individuals at retirement or
prior will combine retirement accounts, and by doing this it
really simplifies and eliminates those potential problems because now you
(19:24):
might have one IRA and one for a one K.
Of course that for a one K needs to be
ruled over to an IRA. I see a lot of
individual retirement accounts iras that are older contracts in annuities.
(19:48):
They are outdated, they don't provide the guaranteed lifetime income benefits,
and the interest rates may be low. So when I
talk about combining i ra's, these annuities can be combined
(20:09):
into one which is up to date with the potential
for more growth, and you can include the guaranteed lifetime
income benefit. So what I have to do is to
review those contracts and if you're thinking of combining them,
(20:33):
I've got to make sure it is in your best
interest to replace those into one new annuity contract. The
other thing I don't want to forget about that the
new contracts could also include some long term care benefits,
(20:56):
which of course is recommended in the retirement plan. And again,
if it's in the client's best interest to make that
move to combine multiple annuities into an updated annuity, it
could work in It's something that you really need to
(21:18):
look into for those of you that have multiple contracts,
and let me know. I'd be happy to do an
annuity review, see where you're at and if there's potential
for bringing those accounts up to date, which could be
better for you. Eight eight eight four two six zero
(21:41):
one seven seven again triple eight four to two six
zero one seventy seven. Okay, I want to go back
and give you an example of a potential problem with
required minimum distributions that I had been discussing. So let's
(22:06):
call this individual Frank. He has three iras a profit
sharing plan in his company's defined benefit plan. So after
figuring the RMD for each of the iras, he can
take a distribution from one, two, or all three as
(22:32):
long as it matches or exceeds the required minimum distribution
for the total of all three. Then we always have
the problem of who's going to figure what the minimum
is that that individual has to take. And it gets
(22:53):
a little bit more detailed, but it can be done
taking just one RMB which will satisfy all three of
those contracts. Now, don't forget there's a couple other plans
that Frank has and he must take rmds from each
of those other plans. He cannot aggregate plans when he
(23:18):
makes the RMD calculation, nor can he take a single
distribution from one or two of those plans. So the
importance of getting it right and how this can be
a little bit complicated can't be stressed enough. And that's
(23:41):
why I want to make sure my clients are doing
it right and doesn't put them in a bad tax
and or penalty situation. Another problem is, let's call this
person Steve. He missed a required minimum distribution because he
(24:01):
withdrew less than what the minimum was. His penalty for
taking two little amounted to a pretty substantial amount. Therefore
he'll have to make that up and also take the
(24:21):
minimum the correct amount the next year. Here's another real problem.
So the point is let's get it done right, not
only the first year, but every year thereafter. Again, as
(24:42):
I said earlier, I'd like to have the companies where
those accounts are figure the RMD each year. Therefore the
liability is on them. And I got to tell you,
in my many years in practice, I can't recall where
(25:08):
a company had miscalculated the RMD for a client. For
those of you that this applies to, or will make
sure these distributions are set up correctly and eliminate the
(25:29):
potential for airs, taxes and penalties by possibly combining these
qualified accounts into one or two. I welcome the opportunity
to talk to you about your potential problem as well
(25:49):
as combining those older annuities that you have eight eight
eight four two six zero one seven seven triple eight
four two six zero one seventy seven. As always, I
appreciate you joining me. My goal is to give you
(26:12):
ideas for a better, safer and more secure retirement plan.
Speaker 4 (26:21):
The Safe Money and Retirement Joe John Heisman Senior to
get in touch with John. Call one AA eight four
two six zero one seven seven. That's one triple eight
four two six zero one seven seven. For more information
about Heisman Financial Services, visit their website heisman fs dot com.
(26:42):
That's h E I S C H M A n
f S dot com. Join us again next time for
the Safe Money and Retirement Joe with John Heisman Senior
Popular Podcasts
Las Culturistas with Matt Rogers and Bowen Yang
Ding dong! Join your culture consultants, Matt Rogers and Bowen Yang, on an unforgettable journey into the beating heart of CULTURE. Alongside sizzling special guests, they GET INTO the hottest pop-culture moments of the day and the formative cultural experiences that turned them into Culturistas. Produced by the Big Money Players Network and iHeartRadio.
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by Audiochuck Media Company.
The Brothers Ortiz
The Brothers Ortiz is the story of two brothers–both successful, but in very different ways. Gabe Ortiz becomes a third-highest ranking officer in all of Texas while his younger brother Larry climbs the ranks in Puro Tango Blast, a notorious Texas Prison gang. Gabe doesn’t know all the details of his brother’s nefarious dealings, and he’s made a point not to ask, to protect their relationship. But when Larry is murdered during a home invasion in a rented beach house, Gabe has no choice but to look into what happened that night. To solve Larry’s murder, Gabe, and the whole Ortiz family, must ask each other tough questions.