Thursday, October 07, 2010
Tips on inheriting a 401(k), gift tax (from Mary Beth Franklin)
Here is a Kiplinger article from the end of 2009 on a little known area, the gift tax, which could help prevent inheritance taxes, which could become more significant in 2011. The link is here. You have to be concerned about look-back period rules, however, if you wind up needing long term care and have given away too much money.
The Washington Examiner today (Oct. 7) ran a Mary Beth Franklin article on p 23, “Your Money: The Bottom Line on 401(k)’s”. I couldn’t find it online yet. But she recommended being aware of the quality of your employer’s 401(k) plan, and if it is unfair, with too many retail fees, only allow the employer to deduct and match the minimum amount, and manage the rest yourself.