Understanding IRA Beneficiary Options

Posted by Mark Piquette on February 4, 2014

The death of a spouse or loved one is a stressful event. In fact, according to the Holmes and Rahe Stress Scale developed by psychiatrists Thomas Holmes and Richard Rahe, the death of a spouse is the most stressful event a person can endure.

For advisors, it’s crucial to help ease clients through this painful life event by making the right estate planning decisions regarding individual retirement account (IRA) beneficiary designations.

A lot is at stake: Assets in IRAs totaled $6.2 trillion at the end of the third quarter of 2013, according to the Investment Company Institute.

Trust Company of America’s latest webinar, “IRA Beneficiary Options,” outlines how advisors can help a beneficiary receive inherited IRA funds, explaining the different types of beneficiaries, as well as the specific terminology beneficiaries will encounter as they begin the process of collecting inherited IRA funds. 

With numerous IRS requirements and an alphabet soup of acronyms, advisors can get bogged down in the minutia of beneficiary options and lose sight of the big picture of serving clients.

For RIAs dealing with IRA beneficiary options, Trust Company of America provides key support to streamline the process, making it more efficient for advisors and more impactful for clients. TCA’s RIA technology platform can help simplify steps throughout the IRA beneficiary designation and distribution process, including automatically calculating Life Expectancy Payments (LEPs). With TCA, advisors can track deadlines, payment schedules and other IRA benefit information, and automatically execute trades to raise cash for LEP payments.

In addition, Trust Company of America’s Liberty Mobile Platform is fully integrated, allowing advisors, representatives and clients to securely view their beneficiary information anytime, anywhere, on any device.

It’s peace of mind when clients need it most.

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