AND OUR NEXT BRAIN THREAT WON'T
COME UNTIL NEXT WEEK.
HOPEFULLY YOU HAVE A NICE
HOLIDAY WEEKEND COMING UP.
WHEN IT COMES TO ROLLING
OVER DISTRIBUTIONS FROM AN IRA,
THERE CAN'T BE PERILS INVOLVED.
PERHAPS WITH SOME INTERNAL
REVENUE IMPLICATIONS AS WELL.
THIS MORNING DAVID YEARS THE
THIRD IS HERE WITH DETAILS ON
HOW TO AVOID THOSE IRA ROLLOVER
PITFALLS.
APPRECIATE YOU BEING HERE.
I ALMOST STUMBLED A BIT WHEN I
SAID IRS APPLICATIONS THERE,
BECAUSE THERE CAN BE SOME IRS
IMPLICATIONS.
IT PUTS THE FEAR IN YOU.
IT REALLY DOES.
AND EVERYBODY.
THE BIGGEST PROBLEM THAT WE
SEE IS A ROLLOVER AS OPPOSED TO
A TRANSFER.
RIGHT.
WHENEVER WE MOVE MONEY FOR
INDIVIDUALS CLIENTS, WE UTILIZE
A TRANSFER.
A ROLLOVER HAS A 60 DAY WINDOW,
AND PEOPLE HAVE UTILIZED ON THE
ADVICE OF A REALTOR A SITUATION
LIKE A SON BUYING A HOUSE.
THE REAL ESTATE AGENT HAS TOLD
HIM TO GO AHEAD AND BORROW THE
MONEY FROM HIS IRA.
OKAY, THAT IS WELL AND GOOD,
BUT THERE'S A 60 DAY WINDOW,
ROLLOVER WINDOW THAT YOU CANNOT
VIOLATE.
AND I'VE HAD SITUATIONS, AND I
SAID CLIENTS WELL-MEANING, BUT
I HAVE BEEN COMMUNICATING WITH
A CLIENT IN INDIANA AT ONE
POINT IN TIME IN MY CAREER THAT
WE WERE DOWN TO THE 58th DAY.
THAT'S CLOSE.
IT REALLY IS.
ONE OF THE EXAMPLES IN THIS
PRIVATE LETTER RULING WHICH
THESE PEOPLE TO THE IRS TO HEAR
IN THIS PRIVATE LETTER RULING
COST THEM OVER $10,000 JUST TO
GET IT HEARD AND THE IRS RULED
AGAINST THEM, SLAMMED THE STICK
DOWN AND SAID, NO, YOU CANNOT
VIOLATE THAT 60 DAY RULE AND
YOU CANNOT MAKE ONE ROLLOVER
PER YEAR.
YOU HAVE TO WAIT AFTER YOU
DO THAT ROLLOVER FOR 365 DAYS.
365 DAYS, CORRECT.
THE SITUATIONS WERE THE REAL
ESTATE AGENT NEVER TOLD A
COUPLE ABOUT THE 60 DAY
ROLLOVER RULE.
THAT'S KIND OF OUT OF HER
WHEELHOUSE, HIS, HER
WHEELHOUSE.
DON'T BELIEVE THAT.
THERE'S ANOTHER EXAMPLE THAT AN
INDIVIDUAL, HIS FATHER WANTED
TO HELP HIM.
SO, HE LOANED HIM $400,000 OUT
OF HIS IRA AND IT DID NOT MAKE
THE 60 DAY WINDOW AND IRS CAME
IN AND THEY CHARGED THE FATHER
TAXES ON THAT $400,000, AND
THEY WOULD NOT RESEND ANY OF
THEIR RULINGS WHATSOEVER.
YOU KNOW HOW THE IRS IS.
THEY ARE PRETTY UNFORGIVING.
LIKE I SAID, THE PRIVATE HEADER
RULING ON TOP OF IT WAS $2000
PLUS.
SO YOU ARE NOT ONLY LOOKING
AT THE TAXES BEING DRAWN, YOU
ARE ALSO LOOKING AT A PENALTY
AS WELL.
EXACTLY.
IF YOU ARE UNDER THE 9 1/2 AND
YOU HAVE BORROWED FROM YOUR
401(K) OR IRA, THERE'S ANOTHER
10% PENALTY ON TOP OF THAT.
SO IT IS A CUMULATIVE --
THIS IS SOMETHING TO KEEP IN
MIND.
IT MAY BE THE BEST WAY TO TO GO
ON A CERTAIN SITUATION, BUT
SOMETHING TO KEEP IN MIND AS
WELL.
YOU ALSO SAID YOU HAD A PIECE
OF INFORMATION YOU WANT TO
SHARE WITH FOLKS AS WE GOT
ABOUT A MINUTE LEFT HERE
GIVEN THE STATE OF BANK CDs
RIGHT NOW, THEY ARE ALMOST
ZERO.
THE 10 YEAR TREASURY WAS .68%.
THAT IS JUST A LITTLE OVER HALF
A PERCENT WE HAVE 50 SOMETHING
ODD COMPANIES THAT WE DEAL WITH
THAT WE ARE TOTALLY
INDEPENDENT.
WE DON'T OWE ANYBODY ANYTHING,
AND THAT IS THE WAY WE HAVE
ALWAYS OPERATED.
I HAVE HAD SOME CLIENTS GET
EXCITED ABOUT A FIVE YEAR
WHAT'S CALLED A MULTIYEAR
GUARANTEED ANNUITY.
IT IS CALLED A MIGA IN SHORT.
WERE GOING TO STOP YOU
RIGHT THERE.
IF THEY NEED INFORMATION ABOUT
THE MIGA, GIVE YOU A CALL AT
THAT NUMBER WE HAVE RIGHT THERE
ON THE SCREEN . ALSO, THAT
WEBSITE AS WELL.
IF YOU HAVE GOT QUESTIONS,
