Headlines about "Estate planning"

Gathered from the web by the editors at BenefitsLink.com.
[Guidance Overview] 401k Better or Worse: You Need Your Spouse's Consent
Excerpt: "A woman who claimed that a plan distribution form indicating her consent to her late husband's distribution election was never properly notarized and therefore invalid has the agreement of a federal judge[.] The husband had elected a split distribution: one half in a lump sum and one half in an annuity without survivor benefits. The husband passed away after having received the lump sum distribution and two annuity payments. The wife then sued over the waiver's validity. ERISA requires that the distribution waiver form be witnessed by a plan representative or a notary. In this case the notary had stamped the document without the wife present The US District Court threw out the waiver form signed by the woman, finding it had not been properly witnessed by a plan representative or a notary as required by ERISA." (Self Directed 401k)

Affluent Investors Do Better Over the Long Term When They Are Engaged with Advisers
Excerpt: "Households that regularly receive advice are better prepared financially for retirement than households that do not receive advice as often. That's the essence of the findings of a recent report, 'Financial Advisors and Boomers,' that I recently completed with Elvin Turner of Turner Consulting LLC for the Retirement Income Industry Association. We sought to explain this differential in preparedness, and found four equally important reasons . . . ." (Investment News; free registration required)

Same-Sex Couples Face Significant Disadvantages in Retirement, According to Study
Excerpt: "A new study released . . . details the inequalities faced by same-sex couples in employer-sponsored retirement plans. Without legal recognition of their relationships under federal law, the report concludes, lesbians and gay men have less retirement income and are disadvantaged in their ability to pass on savings to their families after their death. The study, 'The Impact of Inequality for Same-Sex Partners inEmployer-Sponsored Retirement Plans,' provides the first detailed demographic portrait of older same-sex couples. It was released by the Williams Institute at the UCLA School of Law with funding support from Merrill Lynch in conjunction with National Save for Retirement Week. 'The findings show that, in particular, female same-sex couples have far lessretirement income than different-sex married couples,' says study author Naomi Goldberg." (Reuters)

[Opinion] Book Review: 'The Smartest Retirement Book You'll Ever Read'
Excerpt: "The first problem is inflation. Even if it runs at a relatively tame 3 percent a year, the impact will be substantial. . . . Second, you'll need to figure out how to withdraw enough money during retirement to live the way you want, but without outliving your savings. [The author] sets out to deal with both topics, throwing in advice about other retirement issues like health care costs and estate planning." (The New York Times; free registration required)

[Official Guidance] DOL Advisory Opinion 2009-02A on Estate Planning and IRAs
Excerpt: "[The DOL was asked w]hether an estate plan would give rise to a prohibited transaction under Code section 4975 if it is designed to use permissible minimum distributions from an IRA to fund a Trust, which is not a plan subject to fiduciary obligations under Title I of ERISA or the Code but is a disqualified person with respect to the IRA under Code section 4975, and where the beneficiary of the Trust is the IRA owner's grandson and Trustee of the Trust is the IRA owner's son who is entitled under applicable state law to receive statutory trustee commissions from the Trust." (U.S. Employee Benefits Security Administration)

Moving from Financial Planning to Financial Life Planning (PDF)
10 pages. Excerpt: "Financial life planning is one of the labels used to describe a more integrated and humanistic approach that has emerged over the past decade to address personal financial issues. It signals an evolution of planners from product vendors to trusted advisors who recognize that individuals do not behave rationally regarding decisions involving money, but are instead emotional, conflicted and inconsistent. In addition, they have unique dreams, beliefs, values and challenges. Financial life planners help individuals focus on their values and motivations, determine the goals and objectives they have, and then use these values, motivations, goals and objectives to guide the planning process and provide a framework for making decisions that have financial and non-financial implications. Financial life planning is a holistic process that applies traditional financial analysis within a framework of the individual's life and total resources." (TIAA-CREF Institute)

[Guidance Overview] Are Distributions to Nonspouse Beneficiaries Subject to 20% Mandatory Withholding?
Excerpt: "[Once new rules are] effective, all nonspouse beneficiary distributions will be subject to the normal rules for eligible rollover distributions, including the 402(f) notice and including the 20% mandatory withholding when the funds are paid to the nonspouse beneficiary, instead of being directly rolled to an inherited IRA." (McKay Hochman Co., Inc.)

[Guidance Overview] Opinion from a District Court on QDROs: Their Statutory Basis, Their Purpose, and How They Should Be Structured
Excerpt: "Notably, the court weighs in in a very sensible manner on the never ending question of whether, under ERISA, the divorce decree at issue must comply exactly with the requirements imposed by ERISA to qualify as a QDRO or whether instead, as in horse shoes, close enough counts. In this circuit, close enough is usually good enough, and courts tend to enforce the divorce decree so long as the court is convinced it can accurately ascertain the intent and purpose of the agreement from the decree, regardless of whether the exact detailed requirements that ERISA imposes to qualify as a QDRO have been met." (Stephen Rosenberg of The McCormack Firm, LLC)

[Guidance Overview] Abuse of Discretion Named Top Hat Dispute Standard
Excerpt: "A federal appellate court has ruled that a benefits decision by an administrator of a top hat non-qualified deferred compensation plan should be scrutinized on appeal for any potential abuse of discretion. The decision by the 9th U.S. Circuit Court of Appeals came in a dispute between the prior and current wives of a participant over who would be named by the plan as the designated surviving spouse beneficiary for Robert Sznewajs, a former U.S. Bancorp executive." (PLANSPONSOR.com; free registration required)

[Guidance Overview] After Marriage, Spouse Fails to Consent in Writing to Executed Prenuptial Agreement's Naming of Participant's Child As Beneficiary
Excerpt: "Since there was never an actual spousal consent as required under ERISA, the spouse would be considered the primary beneficiary and unless that surviving spouse properly disclaimed being the beneficiary, he or she would be entitled to the deceased participant assets." (McKay Hochman Co., Inc.)

[Guidance Overview] Nonspouse Beneficiary Rollover Rules
Excerpt: "The purpose of this article is to provide the rules on nonspouse beneficiary rollovers. To start, we provide a list of the guidance on this subject incorporated into this article." (McKay Hochman Co., Inc.)

[Guidance Overview] Nonspousal Rollover Option for Death Benefits Becomes Mandatory in 2010 (PDF)
3 pages. Excerpt: "Nonspousal rollovers were not available before the new PPA provision, which became effective for distributions made after December 31, 2006. After PPA, plans were permitted to allow nonspouse beneficiaries the option of rolling over distributions, but plans were not required to provide that option. The Worker, Retiree and Employer Recovery Act of 2008 makes the nonspousal rollover provision mandatory for plan years beginning after December 31, 2009. Plans will have to offer the rollover alternative to nonspouse beneficiaries receiving plan death benefits." (The ERISA Law Group)

[Guidance Overview] Waiver of Joint and Survivor Annuity Benefit Invalid If Plan Representative Breached Fiduciary Duty
Excerpt: "It's true that generally speaking a properly executed waiver cannot be challenged later by protestations from an aggrieved party regarding what her actual intent might have been. However, the court explained, plan representatives participating in the execution of such waivers have a fiduciary duty to disclose to the beneficiary material facts which the beneficiary should know for her own protection. If that duty is breached, then the waiver is invalid." (Wolters Kluwer)

Financial Well-Being for Employees: A Case Study (PDF)
4 pages. Excerpt: "NCCI [Holdings, Inc.] developed a comprehensive program -- combining retirement planning with a wider view of employees' financial health -- to address employees' life goals and empower them to take charge of their financial lives. The company sought help from external vendors and partnered with its retirement provider, Charles Schwab. Schwab's broad approach to financial education, onsite workshops, and personal financial consultations played an important part in the effort. NCCI introduced plan changes in late 2007, including the launch of automatic enrollment, auto savings increases, and a Roth 401(k) option. The three-year education effort was rolled out in phases in preparation for the plan changes on January 1, 2008." (Schwab Retirement Plan Services, Inc.)

Retirement Plan Administrator Must Ascertain Marital Status Before Paying Benefits
Excerpt: "Where there is conflicting information about a deceased retirement plan participant's marital status, it is unreasonable for a plan administrator to disburse funds until the conflict is resolved, a federal appeals court has ruled (Smith v. New Mexico Coal 401(k) Personal Savings Plan (10th Cir. June 9, 2009)). The US Court of Appeals for the Tenth Circuit found that a plan administrator acted arbitrarily and contrary to plan procedures when it paid benefits to a deceased participant's children after learning that legal proceedings on the participant's marital status were ongoing." (Mercer LLC)

[Guidance Overview] Widow's Claims Against Employer and Insurer Dismissed Because Death Benefit Was Paid According to Plan Procedures
Excerpt: "EBIA Comment: This case extends the Kennedy case's plan document rule in two ways. First, it concludes that plan administrators can ignore the facts and circumstances surrounding a beneficiary designation as well as any external documents. Second, it uses the plan document rule as a shield against breach of fiduciary duty claims. Whether other courts will adopt these extensions (particularly if the plan administrator is actually aware of circumstances that call a beneficiary designation into question), or be equally willing to apply the LaRue case to insurance benefits (which are readily distinguishable from the retirement benefits at issue in LaRue) remains to be seen." (Employee Benefits Institute of America)

[Guidance Overview] The Nonspouse Beneficiary Change to the Law
Excerpt: "The recently passed Workers, Retiree and Employer Recovery Act of 2008 (WRERA) made several technical corrections to the PPA, one of these corrections being that all qualified plans must permit a non-spouse beneficiary the ability to rollover to an inherited IRA for plan years beginning after December 31, 2009. By way of background, this is a change of a change." (McKay Hochman Co.)

Protecting Retirement Accounts from Creditors
Excerpt: "You can start by understanding the exemptions in federal or state laws that may protect your retirement accounts. The good news is that most employer-sponsored plans, including 401(k)'s, are covered by the Employee Retirement Income Security Act, known as Erisa, and are completely protected from creditors -- except when those creditors are former spouses or the I.R.S., said D. James Gehring, a lawyer with Seyfarth Shaw in Chicago." (The New York Times; free registration required)

[Guidance Overview] Attorney Discussion of Effect Kennedy Decision Might Have on Drafting of Plan Documents (PDF)
Excerpt: "In response to the U.S. Supreme Court's recent adoption of the ''plan documents'' rule, plan administrators and sponsors should draft explicit plan language addressing whether they will honor extrinsic waivers of benefits contained in divorce decrees, an attorney discussing the implications of the case said March 4 in an audioconference sponsored by the American Law Institute-American Bar Association." (The Bureau of National Affairs, Inc. via Keightley & Ashner LLP)

Detailed Guidance on Kennedy v. DuPont
Excerpt: "Albert Feuer, whose very helpful work on Kennedy v. DuPont we've used frequently (see here for the latest), is once again giving a hand to those trying to figure out how to deal with the Court's decision. After practitioners who didn't consider themselves ERISA experts asked if he could give them some detailed guidance on how to proceed in a post-Kennedy world, he's generously answered the call with his paper, 'Suggestions for the Treasury, the DOL, ERISA Plan Sponsors, Administrators, Representatives of Plan Participants and Potential Beneficiaries After Kennedy v. Plan Administrator of DuPont Savings and Investment Plan.'" (Workplace Prof Blog)

[Guidance Overview] Beneficiary Designation Under Plan Trumps Divorce Decree Waiver (PDF)
Excerpt: "In Kennedy v. DuPont Savings and Investment Plan, the Supreme Court ruled that a spouse's waiver of her right to pension benefits in a divorce decree did not invalidate the participant's beneficiary designation made in accordance with the terms of the plan." (Buck Consultants)

Optimal Consumption and Portfolio Choice for Retirees
Excerpt: "I show that a transition from the current pay-as-you-go Social Security system to a personal investment-based system benefits retirees with high fraction of pre-annuitized wealth the most because the flexibility of choosing the optimal equity-bond mix for one's annuity portfolio reduces the cost of over-annuitization." (Social Science Research Network)

Changes in Estate Planning: This Year Will See a $3.5 Million Exemption and Lower Estate Values
Excerpt: "The same $3.5 million exemption applies to the Generation Skipping Transfer (GST) tax, which makes the stretch IRA more powerful. Beginning in 2009, we can leave more of our IRA or Roth IRA, free of any GST tax, to grandchildren. Their longer life expectancies will allow the IRA to grow tax-deferred or even tax free (with a Roth IRA) for greater wealth build-up, over time, in stretch IRAs." (Investment News; free registration required)

The Quality of Your Financial Plan May Depend on Whether or Not You Paid for It
Excerpt: "Financial planning provides a way to analyze your current situation, compare it with a defined set of goals and dreams and assess the likelihood of success in achieving them. So, what is a financial plan? A financial plan can be comprehensive or modular. A modular plan will address a specific segment or module of one's financial life, like retirement. A comprehensive plan examines all areas simultaneously." (Forbes.com)

[Guidance Overview] Sample Tax Opinion Regarding How to Transfer an IRA Out of a Trust
Excerpt: "Notice to Executors and Trustees: Here is how to transfer an inherited IRA that is payable to the estate (or trust) OUT of the estate (or trust) to the estate (or trust) beneficiary(ies), WITHOUT having a distribution of the entire account." (Natalie B. Choate)

How to Handle Beneficiary Designations
Excerpt: "The decision about how to designate beneficiaries for your company retirement plan, life insurance policies, and other assets might seem like a no-brainer. Chances are you would like those near and dear to you to inherit any money you've accumulated during your lifetime, so making sure that happens should be as simple as writing their names on the appropriate forms, right? Not so fast. Naming beneficiaries is a more nuanced decision-making process than you might think, and it's one that may have significant repercussions for your loved ones." (Morningstar)

[Guidance Overview] District Court Adopts Agency Principles Deeming Employer Agent of Insurance Carrier
Excerpt: "The Thrall opinion's patina of historical retrospective on prior Ninth Circuit authority veils the court's remarkable decision to elevate state law notions of insurance law over uniformity in ERISA plan administration. The principal issue - when may an employer be deemed an agent of the insurance carrier for purposes of notice of a change in beneficiaries." (Health Plan Law blog by Attorney Roy F. Harmon III)

The IRA - Tax Benefit or Tax Nightmare?
Excerpt: "The stretching of the tax deferment is not difficult. You must simply designate a beneficiary to your IRA account. The younger the beneficiary, the longer the tax deferred compounding. This beneficiary form should be reviewed periodically, and updated as necessary. The reality is that most people do not name a beneficiary and lose this very valuable planning tool. If you have significant assets in retirement accounts, please consider reviewing and updating your beneficiary form. This can be the difference between making your grandchildren or Uncle Sam wealthy." (The Boston Globe)

[Opinion] AARP Urges Supreme Court to Require Participants to Follow Plan Terms in Order to Change Beneficiary Designations
Excerpt: "AARP has filed a 'friend of the court' brief in support of neither party in the Supreme Court case of Kennedy v. Plan Adm'r for DuPont Sav. & Inv. Plan. AARP argues that employee benefit plan documents establish who may be a beneficiary and, here, the executrix of the estate did not meet any of the plan criteria." (AARP)

[Guidance Overview] Final Regs Allowing for Distributions to Missing Nonspousal Beneficiaries
Excerpt: "The Employee Benefits Security Administration (EBSA) has released final regulations and a related Prohibited Transaction Class Exemption that amend existing distribution requirements for terminated defined contribution plans, including abandoned plans, to allow rollovers into inherited IRAs for missing nonspouse beneficiaries. These final rules clarify the Pension Protection Act of 2006 (PPA; P.L. 109-280) provisions regarding missing participants and are effective on November 6, 2008." (Wolters Kluwer)

[Guidance Overview] High Court to Hear Arguments on ERISA Beneficiary Designation
Excerpt: "The U.S. Supreme Court will hear arguments Oct. 7 regarding whether a qualified domestic relations order (QDRO) under the Employee Retirement Income Security Act trumps a woman's voluntary waiver of her ex-husband's pension benefits, an issue that has divided federal appeals courts and left divorce lawyers unsure how to advise clients." (Texas Lawyer)

[Guidance Overview] Analysis of Oral Argument Transcript in ERISA DuPont Case
Excerpt: "The Supreme Court heard oral argument in the case of Kennedy v. Plan Administrator for DuPont Savings and Investment Plan this afternoon. The case concerns whether a divorcing spouse may waive her rights to spousal pensions benefits without going through the qualified domestic relations order (QDRO) process set out in the exceptions to ERISA's anti-alienation rule. What follows is analysis of that oral argument transcript based on my reading of the oral argument transcript in DuPont . . . ." (Workplace Prof Blog)

High Court to Hear Arguments on ERISA Beneficiary Designation
Excerpt: "The U.S. Supreme Court will hear arguments Tuesday regarding whether a qualified domestic relations order (QDRO) under the Employee Retirement Income Security Act trumps a woman's voluntary waiver of her ex-husband's pension benefits, an issue that has divided federal appeals courts and left divorce lawyers unsure how to advise clients." (Law.com)

[Guidance Overview] DC Plans, Distributed Annuities, Spousal Consent and QJSAs
Excerpt: "One of the most nagging issues related to distributing annuities from defined contribution plans is how and when to apply the spousal consent and qualified joint and survivor annuity ('QJSA') rules to distributions." (Baker & Daniels)

The Benefits of Beneficiary Reviews
Excerpt: "Your clients' retirement accounts are often their single largest non-real-estate asset. Yet these assets can be at risk because about 80% of beneficiary forms on individual retirement accounts, defined benefit pension plans and insurance policies are either blank, outdated or not properly filled in. Mistakes made when designating beneficiaries can be costly and even tragic because they impair the ability of your clients to protect, preserve and pass on assets to their heirs." (Investment News; free registration required)

[Guidance Overview] Inherited IRAs--Who Gets What?
Excerpt: "In order to be a designated beneficiary, they must be a living, breathing, natural person or a group of natural persons, or a qualifying trust for the benefit of identifiable natural persons. They do not have to be identified by name, although this is usually a good idea. 'All children of this marriage to share equally' will suffice to make each child a designated beneficiary." (Morningstar)

[Guidance Overview] Is Spousal Consent Required If IRA Owner Wants to Name Person Other Than Spouse As Beneficiary?
Excerpt: "In a community/marital property state (CA, NV, AZ, NM, TX, LA, WA, ID, WI) spousal consent is required whenever an IRA owner does not name his/her spouse as sole primary beneficiary. In any other state, state beneficiary laws and/or financial organization policy should be observed." (Wolters Kluwer)

[Guidance Overview] Feuer on a Curious ERISA Case Before the Supreme Court
Excerpt: "Friend of the blog and prominent ERISA practitioner, Albert Feuer, has penned an indispensable commentary for anyone who is following the ERISA Supreme Court case of Kennedy v. Plan Administrator for Dupont Savings and Invest Plan. Kennedy is set to be argued in front of the Supreme Court this October." (Workplace Prof Blog)

[Guidance Overview] Posthumous QDROs
Excerpt: "Over the years a series of cases have held, for various reasons, that a domestic relations order (DRO) assigning benefits to an intended alternate payee could not qualify as a QDRO if the order was entered after the participant's death. Many practitioners concluded that this was the law, although more recent cases have held to the contrary. PPA section 1001 is a wake up call: it is not too late to get a QDRO after the participant has died!" (Chang, Ruthenberg & Long PC)

[Guidance Overview] ERISA Provisions Governing Vesting and Non-Alienability of Surviving Spouse Benefit Rights
Excerpt: "PROCEDURAL POSTURE: Appellant second wife, individually, and in her capacity as personal representative, appealed from the entry of summary judgment for respondent first wife by the Aiken County Circuit Court (South Carolina) in the second wife's suit concerning the proper distribution of the decedent's pension." (South Carolina Slip and Fall Blog)

[Opinion] Follow-up to the 'Beware of Beneficiary Provisions' Blog
Excerpt: "In [Ed Burmeister's blog, he] channels Andy Rooney, pointing out all that is wrong and risky about beneficiary designation provisions in stock incentive plans and ESPPs. Speaking as only someone who has been through these headaches a few times can, Ed's article points out [a] few of the pitfalls in allowing employees too much latitude in the designation of beneficiaries, given the variety of state and foreign laws, and argues compellingly for simplicity." (Michael S. Melbinger via Winston & Strawn LLP)

[Opinion] Beware of Beneficiary Provisions in Equity Plans
Excerpt: "This article was recently posted on CorporateCounsel.net and on the NASPP website. In this posting, Ed Burmeister speaks candidly about equity plans and beneficiary provisions." (Baker & McKenzie LLP)

[Guidance Overview] IRA Beneficiaries Fail to Take Their Respective RMDs - What Options Are Available to Them Now?
Excerpt: "The fact that the beneficiaries failed to take an RMD in 2007 does not change their distribution option. Instead, they are subject to a 50 percent penalty tax on the amount of the RMD not taken in 2007, which they report to the IRS using IRS Form 5329." (Wolters Kluwer)

[Guidance Overview] FAQs on Retirement Plan Beneficiary Issues
Excerpt: "Q. May a pre-nuptial agreement allow the spouse to waive being the beneficiary on a qualified plan?" (McKay Hochman Co., Inc.)

Getting the Most Out of Your Pension
Excerpt: "If you or your spouse is eligible to receive a pension, it will figure prominently in your retirement planning. However, pension laws are complicated, so it is important to learn the facts about your company's pension plan to make sure that you obtain the benefits to which you are entitled." (The Daily Advertiser)

[Guidance Overview] 'Why Do Spouses Have to Be the Automatic Beneficiary of a Retirement Plan?'
Excerpt: "[The Retirement Equity Act of 1984] amended Title I of ERISA to require written consent of both the employee and his or her spouse to waive the survivors' annuity option in a defined benefit plan. Under certain conditions, this rule also applies to defined contribution plans." (National Benefits Services, Inc.)

Divorce Decree Submitted after Participant's Death Is not a QDRO
Excerpt: "The U.S. District Court for the Middle District of Alabama ruled that a divorce decree did not meet the requirements a Qualified Domestic Relations Order (QDRO) because of technical failures and untimely submission to the plan administrator." (PLANSPONSOR.com; free registration required)

[Opinion] Text of Amicus Brief in re: Kennedy v. Plan Administrator for DuPont Savings and Investment Plan, et al. (PDF)
40 pages. Excerpt: "The rule proposed by Petitioner – under which plan administrators would be required to recognize beneficiary waivers that are not contemplated in the applicable plan documentation – would wreak havoc on plan administration. Petitioner's rule would also impose enormous burdens and costs on plans and their participants and give rise to costly disputes, litigation, and the possibility of double payment of plan benefits." (American Benefits Council)

[Guidance Overview] Beneficiary Designation Form Not Valid When Participant Did Not Sign and Date It
Excerpt: "This case is another cautionary tale: ERISA administrators that fail to have procedures in place (or fail to follow those procedures to ensure that beneficiary designation forms are properly completed, signed, and dated before they are accepted) risk expensive and time-consuming lawsuits . . . ." (Employee Benefits Institute of America)

Unsigned Form Throws Disputed 401(k) Assets to Participant's Son
Excerpt: "A federal judge in Florida has ruled that a deceased 401(k) plan participant's girlfriend is not entitled to half the approximately $450,000 in his account because he did not sign the designation form naming her a partial beneficiary." (PLANSPONSOR.com; free registration required)

[Guidance Overview] Beneficiaries Naming Beneficiaries - Examples and a New Form, the IRA Successor Beneficiary Form
Excerpt: "May an individual retirement account (IRA) beneficiary name a beneficiary -- a successor to receive any remaining assets upon the beneficiary's death? What are the benefits of doing so?" (Wolters Kluwer)

Workplace the Primary Financial Supermarket for Many
Excerpt: "A MetLife news release about its Annual Employee Benefits Trends Study, said the research found that the workplace has become the dominant starting point for building a strong financial safety net. Growing financial concerns among employees are also creating a greater interest in advice and guidance at the workplace." (PLANSPONSOR.com; free registration required)

Participant's Former Stepdaughter Should Get 401(k) Distribution, Says Federal Judge
Excerpt: "U.S. District Judge John R. Tunheim of the U.S District Court for the District of Minnesota issued the ruling that rejected claims the participant's beneficiary designation should not be honored because the participant was incompetent at the time.Tunheim ruled that stepdaughter Tracy Marks did not exert improper influence over James Marier when he executed the beneficiary designation naming Marks in 2001 and 2002.' (PLANSPONSOR.com; free registration required)

Adjusting Retirement Goals and Savings Behavior: The Role of Financial Education (PDF)
Excerpt: "To assist employees of colleges and universities and other nonprofit organizations achieve their retirement goals, TIAA-CREF offers financial education seminars on most college campuses. These voluntary programs offer faculty and staff the opportunity to learn more about the retirement process, income needs in retirement, investment strategies, and basic retirement programs. This paper examines the information contained in these financial education seminars offered by TIAA-CREF associates and assesses how these programs influenced individuals to modify their retirement goals and alter their retirement planning." (TIAA-CREF Institute)

Estate Plan Can Boost Retirement Benefits
Excerpt: "There are four general principles concerning the use of retirement benefits in an estate plan. The first . . . is that the younger the named designated beneficiary of your IRA, the greater the lifetime benefit. We saw that a $100,000 share of an IRA can result in over $1 million in lifetime benefits if the beneficiary is a grandchild, rather than your child." (news-press.com)

[Guidance Overview] Rollovers to Nonspouse Beneficiaries Are Back With Passage of H.R. 3361 - For 2009 not 2008
Excerpt: "For rollovers to nonspouse beneficiaries, the passage of H.R. 3361 has significant impact because of the IRS' position on rollovers to nonspouse beneficiaries." (Pension Protection Act Blog)

[Guidance Overview] Surviving Spouse Plan Requirements Cannot be Changed by Oral Representation
Excerpt: "The 5th U.S. Circuit Court of Appeals affirmed a lower court ruling that a pension plan administrator was correct in denying surviving spouse benefits to a widow not legally married to the deceased participant at the time of his retirement." (PLANSPONSOR.com; free registration required)

[Guidance Overview] Eliminating the HIPAA Catch-22 in Clients' Estate Plans
Excerpt: "One major problem created by HIPAA is its impact on planning for incapacity. Most clients have estate plans that provide for someone else to manage their affairs or make health-care decisions for them if they are unable to do so themselves. This would include their successor trustees of revocable or irrevocable trusts, agents under any financial powers of attorney or medical powers of attorney. A common structure is for these powers to spring into effect upon the incapacity of the individual, as determined by a physician's certification. Unfortunately, your physician might consider making such a certification of incapacity to be a prohibited disclosure of private medical information." (Morningstar)

Supreme Court to Decide Issue of Ex-Spouse Waiver of Benefits
Excerpt: "The U.S. Supreme Court has agreed to hear a case in which the 5th U.S. Circuit Court of Appeals found that a qualified domestic relations order (QDRO) as provided for in the Employee Retirement Income Security Act (ERISA) is the only valid way a divorced spouse can waive his or her right to the ex-spouse's pension benefits." (PLANSPONSOR.com; free registration required)

Save the Date: Financial Advice Free for One Day -- January 25, 2008
Excerpt: "During Jump-Start Days, their expertise is free. Call (888) 919-2345 or log on to www .kiplinger.com/your retirement/jumpstart to participate in an online discussion with an adviser." (Courier-Post)

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