8 ways clients could miss out on Social Security benefits Many seniors miss out on a substantial portion of their Social Security benefits, as they fail to use a claiming strategy that will maximize these benefits, according to this article on Motley Fool. Clients who under-reported their income to avoid taxes will also get smaller retirement benefits than they deserve, as the benefits are based on their income. Couples can also expect lower retirement benefits if they fail to work with their spouse when crafting a claiming strategy, or they are getting a divorce after less than 10 years of marriage.
Understanding inherited IRAs and their inherent dangers Clients who inherit IRAs from deceased loved ones should handle the assets properly, as mistakes could result in bigger tax liability and loss of tax-deferral benefits for these assets, according to this article on Kiplinger. Inherited IRAs are different from self-owned IRAs, so clients should ensure that the inherited IRAs' title is correct and prepare for required minimum distributions starting in the year after the original IRA holder's death. They should also transfer the assets to the Inherited IRA properly, follow the rules, know how to stretch the distributions, and engage in proper tax planning.
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