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A Comprehensive Modular Program
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Foundational Concepts
Major Activities and Decisions
Advanced Strategies and Implementation
Module 1
The Transition Phase
of Retirement and
Your Business
Module 2
Framework for
Retirement Income
Planning
Module 3
Income Resources and
Budgeting Basics
Module 4
Tapping Into Social
Security
Module 5
Expanding the
Scope of Investments
Module 6
Additional Strategies for
Generating Retirement
Income
Module 7
Optimal Withdrawal
Strategies for Tax-
Advantaged Accounts
Module 8
Identifying Target Clients
and Building a Marketing
Strategy
Module 9
Tying It All Together
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Module 7: Optimal Withdrawal Strategies for
Tax-Advantaged Accounts
Income Planning for Clients Nearing Retirement
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Overview
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Convergent Retirement Plan Solutions, LLC © 2015
General rules concerning
tax-qualified retirement savings
• Diversify tax risk
• Avoid costly IRS penalties
• Leverage special tax options
(when appropriate)
• Extend tax-advantaged duration
Optimization strategies
• Partial Roth IRA conversions
• Pre-59½ penalty-free
withdrawals
• Net unrealized appreciation
(NUA)
• Stretch distribution strategies
and Qualified Longevity Annuity
Contracts (QLACs)
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Roth IRA Conversions
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Review Your
Client Base
Check for clients who
• Have significant
retirement savings in
tax-qualified plans
• Are concerned about
tax rates increasing
• Would like to delay
withdrawal of tax-
qualified savings by
reducing required
minimum distributions
(RMDs)
• Would like to leave
more tax-qualified
savings to their heirs
Investors have strong interest in Roth IRAs
and their ability to:
• Generate tax-free retirement income if certain
conditions are met
• Diversify tax risk in retirement
• Create a financial legacy for beneficiaries
For many clients who cannot contribute to a
Roth IRA due to income limitations, one or more
partial Roth conversions may be appropriate
Note: Roth IRA conversions are taxable events.
Federal and state taxes may apply.
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Avoid Betting on the Direction of Taxes: Diversify Tax Risk
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1913 1919 1925 1931 1937 1943 1949 1955 1960 1966 1972 1978 1984 1990 1996 2002 2008 2014 2020 2026 2032 2038 2044 2050
Source: Derived from information published at www.truthandpolitics.org
Top Marginal Federal Tax Rates
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Convergent Retirement Plan Solutions, LLC © 2015
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Partial Roth IRA Conversions Can Help Diversify Tax Risk
Roth IRA Option Adds Another
Dimension of Diversification
(tax-risk diversification)
Conventional IRA Diversification
Is Two Dimensional
(traditional investment diversification)
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Convergent Retirement Plan Solutions, LLC © 2015
7©2015 Pershing LLC. Member FINRA, NYSE, SIPC. For professional use only. Not for distribution to the public. Please see disclosures at end. Proprietary and confidential.
• Federal Penalty exceptions
– A variety of penalty exceptions exist
– QRP exceptions are similar to—
but not identical to—the penalty
exceptions for IRA distributions
• Claiming exception
– Distribution code on IRS Form
1099-R may reflect penalty exception
– Often, investors must File IRS Form
5329 to claim penalty exception
Avoid Costly Penalties: Early Withdrawal Penalty (<59½)
General Rule
Taxable withdrawals
from both IRAs and
employer-sponsored
qualified retirement
plans (QRPs) taken
before age 59½ are
generally subject to
a 10% federal early
withdrawal penalty tax
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Convergent Retirement Plan Solutions, LLC © 2015
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10% Early Distribution Penalty Exceptions IRA QRP
Medical expenses
Health insurance X
Disability
Death
Substantially equal periodic payments *
Separation from service after age 55 X
Higher education expenses X
First-time homebuyer expenses X
IRS levy
Qualified domestic relations order (QDRO)** X
Qualified reservist ***
*Only available after separation from service
**Transfers incident to divorce for IRAs
***401(k) and 403(b) elective deferrals
Avoid Costly Penalties
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Convergent Retirement Plan Solutions, LLC © 2015
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Substantially Equal Periodic Payments
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Review Your
Client Base
Check for clients who
• Are ages 50 to 58
• Want to retire early
or need access to
such funds for any
reason
• Have suffered a
job loss
• Are forced to take
early retirement
The substantially equal periodic
payments penalty exception under
Code Section 72(t)
• Allows penalty-free withdrawals from
IRAs and qualified retirement plans prior
to age 59½
• Provided the client takes substantially
equal payments until the longer of:
– Five years
– Age 59½
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Calculated Using Result
Required
Minimum
Distribution
IRS life expectancy tables Variable annual
distribution amount
Annuitization Mortality tables and
interest rate
Fixed annual
distribution amount
Amortization Life expectancy and
interest rate
Fixed annual
distribution amount
Source: IRS Revenue Ruling 2002-62
Three IRS Safe Harbor Methods for Calculating
Substantially Equal Periodic Payments
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
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Substantially Equal Periodic Payments—
Withdrawal Examples
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
51 52 53 54 55 56 57 58 59
Mo
nth
ly D
istr
ibu
tio
n
Age
RMD Method Amortization Method Annuity Method
Comparing the Three Safe Harbor Methods
This is a hypothetical example. It is not intended to reflect the actual performance of any investment.
Assumptions—No additional contributions. Withdrawal Frequency: Monthly; IRA Owner DOB: 1/1/1965; Spouse Beneficiary DOB: 1/1/1968; Start Date: 2015; RMD Method:
Uniform Lifetime Table; Earnings Assumption for RMD Method: 5%; Interest Rate Assumption for Amortization and Annuity Method: 2.1%
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Convergent Retirement Plan Solutions, LLC © 2015
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Adjust the IRA or plan balance—
transfer in or out
Adjust the rate of return
assumption (up to 120% of
federal mid-term rate of two
preceding months)
Use an alternative life
expectancy factor
Three Options for “Dialing In”
the Desired Withdrawal Amount
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Convergent Retirement Plan Solutions, LLC © 2015
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Safe Harbor
Method
Interest Rate Assumption
(Based on Monthly Mid-Term Applicable Federal Tax Rate of 4%)
80% Applicable
Federal Tax Rate
120% Applicable
Federal Tax Rate
RMD method $1,170 $1,184
Amortization method $1,442 $1,585
Annuity method $1,702 $1,857
Assumptions: Beginning IRA balance $500,000 with no additional contributions. IRA Owner DOB 1/1/1960,
monthly distributions, joint life expectancy, spouse beneficiary DOB 1/1/1960.
Modifying Interest Rate Assumptions
This is a hypothetical example. It is not intended to reflect the actual performance of any investment.
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Convergent Retirement Plan Solutions, LLC © 2015
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Option #1:
Single IRA$400,000
Adjusting the IRA or Plan Balance
• Disadvantages:
– All IRA assets tied up
– Any “unscheduled” IRA distributions will
trigger retroactive 10% early withdrawal
penalty applicable to all distributions
that have been taken
• Target distribution amount:
$1,650/month
• Applicable federal rate: 4%
• Safe harbor: annuity method
• Rate assumption: 3.2%
This is a hypothetical example. It is not intended to reflect the actual performance of any investment. The example assumes a beginning IRA balance of $400,000 with no additional
contributions, the IRA owner’s DOB 1/1/1964 and monthly distributions using the annuity method.
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Convergent Retirement Plan Solutions, LLC © 2015
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Adjusting the IRA or Plan Balance (Continued)
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Convergent Retirement Plan Solutions, LLC © 2015
Option #2:
Split IRA
• Advantages:
– If need arises, client could set up a
second series of penalty-free
substantially equal periodic payments
from IRA (B)
– Discretionary distributions from IRA(B)
will not affect series of substantially
equal periodic payments from IRA(A)
• Target distribution amount:
$1,650/month
• Applicable federal rate: 4%
• Safe harbor: annuity method
• Rate assumption: 4.8%
A
$325,000
B
$175,000
This is a hypothetical example. It is not intended to reflect the actual performance of any investment. The example assumes a beginning IRA balance of $400,000 with no additional
contributions, the IRA owner’s DOB 1/1/1964 and monthly distributions using the annuity method.
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Using an Alternative Life Expectancy Factor
Safe Harbor
Method
Life Expectancy Option
Uniform Life
Expectancy Table
Joint Life
Expectancy Table
Single Life
Expectancy Table
RMD method $1,002 $1,120 $1,408
Amortization
method$1,349 $1,465 $1,746
Annuity method $1,780 $1,780 $1,780
Assumptions: Beginning IRA balance $500,000 with no additional contributions, IRA Owner DOB 1/1/1960,
monthly distributions, joint life expectancy, spouse beneficiary DOB 1/1/1963.
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Convergent Retirement Plan Solutions, LLC © 2015
17©2015 Pershing LLC. Member FINRA, NYSE, SIPC. For professional use only. Not for distribution to the public. Please see disclosures at end. Proprietary and confidential.
Review Your
Client Base
Do you have clients:
• Nearing retirement
age who have
executive-level
positions at public
companies?
• Who have highly
appreciated
company stock in a
former employer’s
plan and are in a
high tax bracket?
• Nearing retirement
who need income
strategies?
Take Advantage of Net Unrealized Appreciation
• The net unrealized appreciation (NUA) tax rule enables
qualified-plan participants the option of electing special NUA
tax treatment on qualifying withdrawals of employer stock
– Distribution must generally qualify as a lump sum distribution*
– At distribution, only the cost basis in the shares is taxed, at ordinary
federal income tax rates
– Federal tax on the appreciation (capital gains) in the shares is deferred until
time of sale
– Upon sale, NUA is taxed at long-term capital gains rate (versus federal
ordinary income tax rates)
– Note: Participants may be subject to the 10% federal penalty for premature
distributions if before age 59½
• NUA tax treatment must be addressed prior to an IRA rollover
– NUA tax treatment is forfeited once employer stock is rolled to an IRA
– Under some circumstances, an IRA rollover can still be a
better choice
*A lump sum distribution is defined as the disbursement of an individual’s entire vested account balance from an employer-sponsored retirement plan within one taxable year as a result of
a “triggering event.” Triggering events are limited to separation from service, attainment of age 59 ½ or death.
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
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Net Unrealized Appreciation: An Example
NUA (Tax Paid With
Outside Assets)
IRA Rollover
Strategy
Investment in shares purchased in company plan(cost basis)
$200,000 $200,000
Market value of shares at distribution $500,000 $500,000
Net unrealized appreciation (market value—cost basis) $300,000 $0
Future account value in 10 years before federal income tax at 5% annual growth rate
$814,447 $814,447
Taxes on initial distribution at 39.6% ordinary income tax rate
$79,200 N/A
Future ordinary federal income taxes at 39.6% at final sale $0 $322,521
Future capital gains tax (20%) and Medicare tax (3.8%) at
final sale$146,238 N/A
Future account value after taxes $589,009 $491,926
Potential increase in wealth due to NUA tax strategy $97,083 N/A
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Assumes a 39.6% federal income tax rate and a 20% capital-gain tax rate, plus 3.8% Medicare tax. If the NUA strategy is used, a complete distribution of all assets from the 401(k) plan
must occur in a single tax year. This example is hypothetical and does not depict the performance of any specific stock or NUA treatment. Values fluctuate and when is employer stock
sold, it may be worth more or less than the original cost. This illustration does not take into consideration any state or local taxes.
The greater the appreciation and the higher the client’s federal tax bracket,
the greater the advantage of using the NUA strategy
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Investors should consider their individual circumstances before electing a rollover or NUA treatment.
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Convergent Retirement Plan Solutions, LLC © 2015
Net Unrealized Appreciation: Key Considerations
Circumstances That Tend to
Favor Rollover
• Intend to liquidate employer
securities in near future
• The ratio of NUA to cost
basis is relatively low
• Concerned about future increases
in capital gains rate
Circumstances That Tend to
Favor NUA Treatment
• Intend to hold employer securities
for a relatively long time
• The ratio of NUA to cost
basis is relatively high
• Higher income tax bracket
(greater disparity between ordinary
tax rate and capital gain rate)
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Example
• Participant takes qualifying distribution
of $500,000 worth of employer stock
• At time of distribution, participant pays
ordinary income taxes on $100,000 basis
• At death, stock has appreciated in value
to $800,000
• $400,000 of NUA does not qualify for
stepped-up basis
• $300,000 of post-distribution appreciate
does qualify for stepped-up basis
• Result: Beneficiary inherits $800,000 worth of
stock with a basis of $400,000 (initial basis of
$100,000 plus stepped-up basis of $300,000
from post-distribution appreciation)
Special rules often apply to
beneficiaries of deceased
plan participants who took
distributions of qualifying
employer stock
• NUA treatment (in-plan appreciation
prior to distribution) does not qualify for
a step up in basis (as typically happens
with securities purchased outside of a
qualified plan)
• However, post-distribution appreciation
will typically qualify for basis step up
Net Unrealized Appreciation:
Basis Step-Up Considerations
Beneficiaries of deceased qualified plan participants who receive employer stock as part of a qualified plan distribution are also often eligible for NUA tax treatment on distributions of
qualifying employer stock.
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
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Use a Stretch IRA Distribution Strategy to Help
Retain Assets for Beneficiaries
• A technique for allowing more
IRA assets to remain in an IRA
growing tax deferred—possibly
for generations
• Extends distributions over the
longer life expectancies of
younger beneficiaries
• Reduces the amount that must
be withdrawn annually
• Can be an effective wealth-
transfer strategy
Client’s
Age
Spousal
Beneficiary’s
Age
Distribution
Period/Life
Expectancy
(Yrs.)*
RMD (Initial
Account Value
= $250,000)
70 60+ 27.4 $9,125
70 50 35.1 $7,125
70 40 44.0 $5,114
This example is for illustrative purposes only and is not meant to represent any specific investment. The example assumes a 4% rate of return.
Source: IRS Publication 590, Individual Retirement Arrangements. *Life Expectancy Tables I, II and III.
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Note: significant conditions, restrictions, and limitations apply to both the original IRA owner and the beneficiary including, but not necessarily limited to, eligibility requirements,
timing factors and distribution requirements. The beneficiary’s distribution period is potentially very lengthy, and this strategy is based upon current tax law, which could change
during the distribution period and may significantly impact its outcome, including a beneficiary’s ability to maintain estimated distributions. A lengthy distribution period also
exposes investors to significant market and inflation risk as well as ongoing fees, costs and charges that may be applicable during the distribution period.
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Use a Stretch IRA Strategy to Help
Retain Assets for Beneficiaries
• Naming a younger non-spouse
as beneficiary can help further
extend the life of the IRA
• Once the owner dies, the
distribution period is extended
based on the longer life
expectancy of the younger
beneficiary
This example is for illustrative purposes only and is not meant to represent any specific investment. The example assumes a 4% rate of return.
Source: IRS Publication 590, Individual Retirement Arrangements. *Life Expectancy Tables I, II and III.
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Client’s
Age
Age of
Nonspouse
Beneficiary
Life
Expectancy
(Yrs.)**
RMD (Initial
Account Value
= $250,000)
N.A. 40 43.6 $5,735
N.A. 30 53.3 $4,690
N.A. 20 63.0 $3,968
Note: significant conditions, restrictions, and limitations apply to both the original IRA owner and the beneficiary including, but not necessarily limited to, eligibility requirements,
timing factors and distribution requirements. The beneficiary’s distribution period is potentially very lengthy, and this strategy is based upon current tax law, which could change
during the distribution period and may significantly impact its outcome, including a beneficiary’s ability to maintain estimated distributions. A lengthy distribution period also
exposes investors to significant market and inflation risk as well as ongoing fees, costs and charges that may be applicable during the distribution period.
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Stretching the IRA Tax-Advantage
$409,000 $19,824,000$1,149,000
Tom takes minimum
distributions from his
IRA for 10 years
beginning in 2019
Mary rolls over
Tom’s IRA and
receives minimum
distributions for
15 years
Tom and Mary’s granddaughter,
Meagan, begins receiving distributions
in 2044. Meagan takes minimum
distributions from the IRA for the next
53 years
2015 2029 2044 2097
This is a hypothetical example. It is not intended to reflect the actual performance of any investment. No additional contributions are made to the IRA and no distributions other than the
projected RMDs are taken from the IRA. All RMDs are withdrawn from the IRA on 12/31 of the projection year. Life expectancy calculations during Tom and Mary’s life are based on the
Uniform Lifetime Table. Life expectancy calculations for Meagan are based on the Single Life Expectancy Table. Calculated RMDs do not reflect any tax liability. Rates of return used in the
RMD projections are compounded annually and do not represent the performance of any specific security.
There is no guarantee that the selected rate of return can be achieved.
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Convergent Retirement Plan Solutions, LLC © 2015
Tom Passes Mary Passes
Note: significant conditions, restrictions, and limitations apply to both the original IRA owner and the beneficiary including, but not necessarily limited to, eligibility requirements,
timing factors and distribution requirements. The beneficiary’s distribution period is potentially very lengthy, and this strategy is based upon current tax law, which could change
during the distribution period and may significantly impact its outcome, including a beneficiary’s ability to maintain estimated distributions. A lengthy distribution period also
exposes investors to significant market and inflation risk as well as ongoing fees, costs and charges that may be applicable during the distribution period.
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Year the IRA is
Fully Depleted
Hypothetical
Cumulative IRA
Withdrawals
Tom had named his estate as his primary
beneficiary?2039 $2,358,000
Mary did not elect to treat the IRA as her
own following Tom’s death?2049 $2,583,000
As compared to taking full advantage of
the stretch opportunity…2097 $21,382,000
But, What If…
This is a hypothetical example. It is not intended to reflect the actual performance of any investment. No additional contributions are made to the IRA and no distributions other than the
projected RMDs are taken from the IRA. All RMDs are withdrawn from the IRA on 12/31 of the projection year. Life expectancy calculations during Tom’s life are based on the Uniform
Lifetime Table. Calculated RMDs do not reflect any tax liability. Rates of return used in the RMD projections are compounded annually and do not represent the performance of any specific
security. There is no guarantee that the selected rate of return can be achieved.
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Convergent Retirement Plan Solutions, LLC © 2015
Stretching the IRA Tax-Advantage
Note: significant conditions, restrictions, and limitations apply to both the original IRA owner and the beneficiary including, but not necessarily limited to, eligibility requirements,
timing factors and distribution requirements. The beneficiary’s distribution period is potentially very lengthy, and this strategy is based upon current tax law, which could change
during the distribution period and may significantly impact its outcome, including a beneficiary’s ability to maintain estimated distributions. A lengthy distribution period also
exposes investors to significant market and inflation risk as well as ongoing fees, costs and charges that may be applicable during the distribution period.
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Additional Stretch Distribution Strategy Considerations
Beneficiary Disclaimers
(Code Sec. 2518)
Potential for the
designated beneficiary
to relinquish beneficial
rights—potentially
allowing for
greater stretch
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Convergent Retirement Plan Solutions, LLC © 2015
Note: significant conditions, restrictions, and limitations apply to both the original IRA owner and the beneficiary including, but not necessarily limited to, eligibility requirements,
timing factors and distribution requirements. The beneficiary’s distribution period is potentially very lengthy, and this strategy is based upon current tax law, which could change
during the distribution period and may significantly impact its outcome, including a beneficiary’s ability to maintain estimated distributions. A lengthy distribution period also
exposes investors to significant market and inflation risk as well as ongoing fees, costs and charges that may be applicable during thedistribution period.
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Additional Stretch Distribution Strategy Considerations (Continued)
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Stretching a
Roth IRA
Increase stretch
potential by avoiding
required minimum
distributions at age 70½
Convergent Retirement Plan Solutions, LLC © 2015
Note: significant conditions, restrictions, and limitations apply to both the original IRA owner and the beneficiary including, but not necessarily limited to, eligibility requirements,
timing factors and distribution requirements. The beneficiary’s distribution period is potentially very lengthy, and this strategy is based upon current tax law, which could change
during the distribution period and may significantly impact its outcome, including a beneficiary’s ability to maintain estimated distributions. A lengthy distribution period also
exposes investors to significant market and inflation risk as well as ongoing fees, costs and charges that may be applicable during the distribution period.
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Additional Stretch Distribution Strategy Considerations (Continued)
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Irrevocable Life
Insurance Trusts
Potentially cost-effective
way to reduce estate
tax liability and increase
value of stretch IRA
Convergent Retirement Plan Solutions, LLC © 2015
Note: significant conditions, restrictions, and limitations apply to both the original IRA owner and the beneficiary including, but not necessarily limited to, eligibility requirements,
timing factors and distribution requirements. The beneficiary’s distribution period is potentially very lengthy, and this strategy is based upon current tax law, which could change
during the distribution period and may significantly impact its outcome, including a beneficiary’s ability to maintain estimated distributions. A lengthy distribution period also
exposes investors to significant market and inflation risk as well as ongoing fees, costs and charges that may be applicable during the distribution period.
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Qualified Longevity Annuity Contracts (QLACs)
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
QLACs
New planning option for
lowering RMDs and
reducing longevity risk
Convergent Retirement Plan Solutions, LLC © 2015
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Qualified Longevity Annuity Contracts (QLACs)
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Convergent Retirement Plan Solutions, LLC © 2015
A longevity
annuity
contract that
meets
specific IRS
requirements
The maximum amount that
may be allocated to the
purchase of a QLAC is the
lesser of:
• 25% of total tax-qualified
retirement savings or
• $125,000
• Smaller RMDs—
Value of QLAC is not
included in value of IRA
when calculating required
minimum distributions
(RMDs)
• Reduced longevity risk—
QLAC provides a lifetime
income stream beginning
at a specified age
(no later than 85)
How much retirement
savings can be used to
purchase a QLAC?
What are the primary
benefits of purchasing a
QLAC with IRA assets?
What is a
QLAC?
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John and Martha: Before and After
John and Martha, both in great health, would like to reduce their IRA required
minimum distributions and take steps to help reduce the likelihood of outliving
their retirement savings. Each has $400,000 in accumulated IRA savings as
they enter their 70½ year.
Both John and Mary decide to invest $100,000 of their IRA savings in a QLAC.
As the charts below illustrate, the impact on their collective RMDs is significant.
John’s 1st Year RMD
Without
QLAC
$400,000
27.4$14,599
With
QLAC
$300,000
27.4$10,949
Martha’s 1st Year RMD
Without
QLAC
$400,000
27.4$14,599
With
QLAC
$300,000
27.4$10,949
Total 1st
Year RMD
Reduction
$7,300
Convergent Retirement Plan Solutions, LLC © 2015
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
31©2015 Pershing LLC. Member FINRA, NYSE, SIPC. For professional use only. Not for distribution to the public. Please see disclosures at end. Proprietary and confidential.
Some Conclusions
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
Be on the lookout for clients who may benefit
from Roth IRA conversions
Before initiating an IRA rollover from an employer plan,
be sure to ask if any assets are employer securities
Help clients understand tax-saving and
legacy-creating strategies
Take advantage of educational tools and calculators
that can help you engage with clients
32©2015 Pershing LLC. Member FINRA, NYSE, SIPC. For professional use only. Not for distribution to the public. Please see disclosures at end. Proprietary and confidential.
Resources
Industry Resources
IRS.gov Understanding Life Insurance Trusts
Rothira.com Spark Institute Summary of QLAC Regulations
Pershing Resources
Rollover IRA Brochure Client Fact Sheets: NUA, 72(t) Distributions and
Stretch IRA Strategy
Traditional and Roth IRA Brochure Pershing Retirement Solutions Brochure
IRA Selector Retirement Calculators (also in the Retirement
Center under Tools in NetX360®)
Additional Resources
MoneyGuidePro™ NaviPlan
Wealth2K® Guided Choice
LifeYield®
Third party sites provided for convenience, Pershing does not endorse these sites or their content.
Module 7 Optimal Withdrawal Strategies for Tax-Advantaged Accounts
33©2015 Pershing LLC. Member FINRA, NYSE, SIPC. For professional use only. Not for distribution to the public. Please see disclosures at end. Proprietary and confidential.
Important Disclosure Information
• This presentation and the information or opinions contained herein has been prepared by Pershing LLC
for informational purposes only without reference to any specific person's investment objectives or
financial situation. The presentation and the information are for reference purposes only and are not
intended to be a recommendation with respect to, or solicitation or offer to buy or sell any particular
security, financial instrument, or investment product, or to participate in any particular trading strategy in
any jurisdiction in which such offer or solicitation, or trading strategy would be illegal. Pershing LLC and its
affiliates do not intend to provide investment advice through this presentation and do not represent that the
securities or services discussed are suitable for any investor. Pershing LLC and its affiliates do not, and
this presentation does not intend to, render tax or legal advice.
• Tax laws are complex and subject to change. The information contained herein is based on current federal
tax laws in effect at the time it was written. Pershing LLC and its affiliates do not provide tax or legal
advice. The presentation and information provided herein were not intended nor written to be used for the
purpose of avoiding tax or penalties that may be imposed on the taxpayer. Individuals are urged to consult
their tax or legal advisors to understand the tax and related consequences of any actions or investments
described herein.
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