|
|
|
|
Financial Firms Making Costly Errors in Customers' IRA Accounts
IRA law is complicated and mistakes can be costly.
Consider a Virginia man who instructed Fidelity to withdraw his required IRA payout, $170,000, by year end. The money was not withdrawn on time. The man was penalized $85,000.
Also consider the doctor in New Jersey who instructed his Quick & Reilly broker to create 8 subaccounts out of his IRA, one for each heir. Quick & Reilly delayed doing so because it thought that it could create these subaccounts when the doctor died. They were wrong -- such accounts had to be set up by April 1st of the year in which the doctor turned 70 1/2. That mistake significantly will reduce the heir's inheritance.
Thus, the owner's acceleration election did not preclude the beneficiary from using her life expectancy after his death.
Source: Investment News, August 21, 2000
|
About Us
|
News
|
Alerts
|
Articles
|
SNSFE News
|
Calendar
|
Contact
|
Search
Register
|
Free Opinion
Sponsored by James J. Eccleston, an attorney representing stockbrokers, financial planners and
investors nationwide in arbitration, litigation and regulatory matters, and a shareholder with the law firm
Shaheen, Novoselsky, Staat, Filipowski & Eccleston
P.C.(www.snsfe-law.com). This Web site contains material
of general interest. It is neither intended to, nor constitutes, either legal advice or investment advice.
Always consult an attorney and/or investment advisor when building and protecting your wealth.
All content Copyright © 2008 Advocate Capital Management, Inc. except where noted. All rights reserved.
20 North Wacker Drive, Suite 2900, Chicago, Illinois 60606
Telephone: 312-621-4400 | Fax: 312-621-0268
|
|
|
|
|
