Tune Up & Supercharge Your IRATune Up & Supercharge Your IRA©© 20152015

Herb Farrington, Herb Farrington, EA, CFPEA, CFP®®

Cell: (714) 904-5825Cell: (714) 904-5825herbf76@msn.com

This presentation is for educational purposes only; it is not individual tax or financial advice. Attendees should consult with their This presentation is for educational purposes only; it is not individual tax or financial advice. Attendees should consult with their

personal financial advisor to determine whether any of the issues presented are appropriate to their own situation. personal financial advisor to determine whether any of the issues presented are appropriate to their own situation. Use of these Use of these

materials in any other manner or context is neither recommended nor authorized by the author. materials in any other manner or context is neither recommended nor authorized by the author.

© 2015 Herbert D. Farrington© 2015 Herbert D. Farrington

Government & Your MoneyGovernment & Your Money

Irony:In the last four years, the Federal government’s Food Stamp program

enrollment has risen from 31 million to 47 million Americans.

The US National Park Service warns:"Please Do Not Feed the Animals.“

Their stated reason for the policy: "The animals will grow dependent on handouts and will not learn to take care of themselves."

Government & Your MoneyGovernment & Your Money

All Time Record of Federal Taxes Collected:In the first four months of the current fiscal year (October 2014 –

January 2015), a record of $1,046,224,000,000 was collected.

None the less, there was a deficit. Spending exceeded taxes.

Good News:Two important savings plans that were threatened by Obama’s 2015

budget proposal have been saved: Roth IRAs 529 Plans

Both Democrat and Republican congressional leaders opposed these proposals

Who is your Beneficiary?

Do you care?

(You should)

Retirement Account BeneficiariesRetirement Account Beneficiaries

Kennedy CaseKennedy Case William and Liv married in 1971William and Liv married in 1971

William filled out the designation form making Liv his beneficiaryWilliam filled out the designation form making Liv his beneficiary William and Liv had a daughter, KariWilliam and Liv had a daughter, Kari

William and Liv divorced in 1994William and Liv divorced in 1994 Divorce settlement specified that the retirement account was Divorce settlement specified that the retirement account was

William’s property and Liv must waive all rights to it (and she William’s property and Liv must waive all rights to it (and she did so).did so).

William died in 2001William died in 2001 Kari made a claim for the retirement benefits as executor of Kari made a claim for the retirement benefits as executor of

William’s estate and the terms of the divorce settlementWilliam’s estate and the terms of the divorce settlement Liv had previously moved back to Norway and remarriedLiv had previously moved back to Norway and remarried Liv had died and her new husband was her legal heirLiv had died and her new husband was her legal heir William’s $400,000 retirement account was distributed to Liv’s William’s $400,000 retirement account was distributed to Liv’s

new husband, new husband, notnot the estate/daughter ! the estate/daughter ! Why ?Why ?

William never changed his beneficiary designation and Liv William never changed his beneficiary designation and Liv was still the named beneficiary at the time of William’s was still the named beneficiary at the time of William’s deathdeath

Unanimous US Supreme Court decision 2009Unanimous US Supreme Court decision 2009

406205

Check and update Check and update youryour beneficiary beneficiary designations!designations!

andand

Get an acknowledged copy of your Get an acknowledged copy of your beneficiary designation from your IRA beneficiary designation from your IRA

custodian, pension plan, and life insurance custodian, pension plan, and life insurance company … just in casecompany … just in case

Beneficiary Designations: Review & UpdateBeneficiary Designations: Review & Update

Your family:Your family:Have you married, divorced, or remarried ?Have you married, divorced, or remarried ?Children and grandchildren: births, marriages, divorces, Children and grandchildren: births, marriages, divorces, remarriages?remarriages?Review your beneficiary designations with the above in mindReview your beneficiary designations with the above in mindChanging a Will or Trust probably will Changing a Will or Trust probably will notnot affect how your pension, affect how your pension, IRA, or life insurance is paid out after your deathIRA, or life insurance is paid out after your death

IRAs are distributed to the IRA’s designated beneficiaryIRAs are distributed to the IRA’s designated beneficiary Some states have community property rules that can affect Some states have community property rules that can affect

thisthis You can designate your trust or estate as beneficiaryYou can designate your trust or estate as beneficiary

Primary Beneficiaries (one or more)Primary Beneficiaries (one or more)Secondary Beneficiaries (in case your Primary predeceases you)Secondary Beneficiaries (in case your Primary predeceases you)Tertiary Beneficiaries (may facilitate a “Stretch IRA” for the family)Tertiary Beneficiaries (may facilitate a “Stretch IRA” for the family)Minors as beneficiaries: Minors as beneficiaries: Caution!Caution!

Upon your death, may involve a trip to Probate Court to Upon your death, may involve a trip to Probate Court to appoint a guardianappoint a guardian

Upon the child’s 18Upon the child’s 18thth birthday, a trip to a sports car dealer ! birthday, a trip to a sports car dealer !

Bankruptcy Protection?

IRAs Up $1,245,475 for IRAs*

Traditional IRA Roth IRA Not inherited IRAs (no protection)

Employer pension plans, 401(k), 403(b), etc. Unlimited

* Adjusted for inflation

Moving IRA Funds

IRA 60 day Rollover 1 per year (New! Bobrow rule 2014) Second one = taxable withdrawal

IRA direct trustee to trustee transfer Unlimited number per year Recommended for Roth conversions

IRA Distributions after Death: Spouse ChoicesIRA Distributions after Death: Spouse Choices

Rollover the IRA into the surviving spouse’s nameRollover the IRA into the surviving spouse’s name The IRA is now treated as the IRA of the surviving spouseThe IRA is now treated as the IRA of the surviving spouse Trap: Trap: If surviving spouse is under age 59 ½ and needs income If surviving spouse is under age 59 ½ and needs income

now, early withdrawal penalty appliesnow, early withdrawal penalty applies Age 70½ RMDs based on surviving spouse’s ageAge 70½ RMDs based on surviving spouse’s age

Uniform Lifetime Table = reduced RMDs Uniform Lifetime Table = reduced RMDs (better option if age (better option if age 70 1/2 )70 1/2 )

Name new beneficiaries of survivor to assure desired results and Name new beneficiaries of survivor to assure desired results and to pass “stretch IRA” advantages to familyto pass “stretch IRA” advantages to family

Keep the IRA as an inherited IRAKeep the IRA as an inherited IRA ““John Doe IRA, FBO Mary Doe beneficiary”John Doe IRA, FBO Mary Doe beneficiary” If surviving spouse is If surviving spouse is under age 59 ½, this isunder age 59 ½, this is usually the better usually the better

option option because early withdrawal penalty does because early withdrawal penalty does notnot apply. apply. RMDs begin when the deceased would have been age 70½RMDs begin when the deceased would have been age 70½

Single Life Table = larger RMDsSingle Life Table = larger RMDs Spouse can convert to first option above at age 59½ Spouse can convert to first option above at age 59½

Disclaim IRA (must be done within 9 months of death)Disclaim IRA (must be done within 9 months of death) Used if spouse doesn’t need the money and wants it to pass to Used if spouse doesn’t need the money and wants it to pass to

childrenchildren Used for special estate, dependency, or “Stretch IRA” strategiesUsed for special estate, dependency, or “Stretch IRA” strategies

IRA Distribution after Death: Non-SpousesIRA Distribution after Death: Non-Spouses

1.1. Transfer title as an “Inherited IRA”Transfer title as an “Inherited IRA” ““John Doe IRA, FBO Bill Doe beneficiary”John Doe IRA, FBO Bill Doe beneficiary” Caution: Do a trustee-to-trustee transfer. Caution: Do a trustee-to-trustee transfer. NoNo 60 day rollover 60 day rollover If the original IRA owner died before age 70½:If the original IRA owner died before age 70½:

Withdrawals can be taken at anytime within 5 years of death Withdrawals can be taken at anytime within 5 years of death without any early withdrawal penalties; full withdrawal without any early withdrawal penalties; full withdrawal required by December 31 of 5required by December 31 of 5thth year after death, year after death, OROR

““Stretch IRA” withdrawals can be taken based on the Stretch IRA” withdrawals can be taken based on the beneficiary’s life expectancy; must begin by year after death.beneficiary’s life expectancy; must begin by year after death.

If the original IRA owner died after age 70½:If the original IRA owner died after age 70½: ““Stretch IRA” withdrawals can be taken based on the Stretch IRA” withdrawals can be taken based on the

beneficiary’s life expectancybeneficiary’s life expectancy RMDs must begin by year after death.RMDs must begin by year after death.

Withdrawals are taxable if from a traditional IRAWithdrawals are taxable if from a traditional IRA Withdrawals are Withdrawals are notnot taxable if from a Roth IRA taxable if from a Roth IRA

2.2. Disclaim IRA (must be done within 9 months of death)Disclaim IRA (must be done within 9 months of death) Used if beneficiary doesn’t need the money and wants the IRA to Used if beneficiary doesn’t need the money and wants the IRA to

pass to another family memberpass to another family member Used for special estate, dependency, or “Stretch IRA” strategiesUsed for special estate, dependency, or “Stretch IRA” strategies

““Stretch IRA”Stretch IRA”

What’s That ?What’s That ?

A Powerful Tax and Estate Planning Strategy !A Powerful Tax and Estate Planning Strategy !

““Stretch IRA”Stretch IRA”

Tax-deferred and tax-free investing for multiple generationsTax-deferred and tax-free investing for multiple generations

Upon death of IRA owner, transfer title as an “Inherited IRA”Upon death of IRA owner, transfer title as an “Inherited IRA” ““John Doe IRA, FBO Bill Doe beneficiary”John Doe IRA, FBO Bill Doe beneficiary” Caution: Do a trustee-to-trustee transfer. Caution: Do a trustee-to-trustee transfer. NoNo 60 day rollover 60 day rollover While funds are in IRA, no taxation on earningsWhile funds are in IRA, no taxation on earnings WithdrawalsWithdrawals

Minimum amount based on the beneficiary’s life Minimum amount based on the beneficiary’s life expectancyexpectancy

RMDs must begin by year after deathRMDs must begin by year after death No early withdrawal penaltiesNo early withdrawal penalties

A great family estate planning toolA great family estate planning tool New owner should designate new beneficiaries!New owner should designate new beneficiaries! Applies to traditional IRAs and Roth IRAsApplies to traditional IRAs and Roth IRAs Provides tax deferred or tax-free investing for multiple Provides tax deferred or tax-free investing for multiple

generationsgenerations Check to see if your IRA document provides for a Stretch IRACheck to see if your IRA document provides for a Stretch IRA

That is: place to designate a tertiary beneficiaryThat is: place to designate a tertiary beneficiary

IRAs: Traditional vs. RothIRAs: Traditional vs. Roth

Traditional IRATraditional IRA Contributions and Contributions and

investment gains are investment gains are tax-tax-deferreddeferred

Withdrawals are Withdrawals are taxedtaxed at ordinary income tax at ordinary income tax ratesrates

RMDs after age 70RMDs after age 70½½ Withdrawals by Withdrawals by

beneficiary are beneficiary are taxedtaxed at at ordinary income tax ratesordinary income tax rates

Roth IRARoth IRA Contributions and Contributions and

investment gains are investment gains are tax-tax-freefree

Withdrawals are Withdrawals are tax-freetax-free

NoNo age 70 age 70½ RMDs RMDs

Withdrawals by Withdrawals by beneficiary are beneficiary are tax-freetax-free

Each dollar in a Roth IRA Each dollar in a Roth IRA is more valuable than a is more valuable than a dollar in a traditional IRAdollar in a traditional IRA

Taxation of IRAsTaxation of IRAsTraditional IRAsTraditional IRAs Generally, withdrawals are taxed as ordinary income (up to Generally, withdrawals are taxed as ordinary income (up to

39.6% plus state income tax). For high income persons, can 39.6% plus state income tax). For high income persons, can be 50%+be 50%+

Exception:Exception: After-tax contributions are tax-free, pro-rata rule appliesAfter-tax contributions are tax-free, pro-rata rule applies

Early withdrawal penaltyEarly withdrawal penalty 10% in addition to regular income tax rate10% in addition to regular income tax rate Applies if under age59½Applies if under age59½ Exceptions:Exceptions:

Death, Total disability, Medical expenses, College Death, Total disability, Medical expenses, College expenses, First home purchase, QDRO, Substantially expenses, First home purchase, QDRO, Substantially equal paymentsequal payments

Age 70½ RMD penalty: 50% plus regular income tax !Age 70½ RMD penalty: 50% plus regular income tax !

Roth IRAsRoth IRAs Tax-free !Tax-free ! Two 5 year rules for early withdrawals (we’ll cover that later)Two 5 year rules for early withdrawals (we’ll cover that later) NoNo age 70½ penalties age 70½ penalties

Age 70½ Required Minimum DistributionsAge 70½ Required Minimum Distributions

RMDsRMDsBeginning at age 70½, you must withdraw a minimum Beginning at age 70½, you must withdraw a minimum amount each year from your IRA based on life expectancyamount each year from your IRA based on life expectancy

As you get older, the amount increases every yearAs you get older, the amount increases every year Withdrawals are taxable at ordinary income ratesWithdrawals are taxable at ordinary income rates

AlternativesAlternatives::1.1.Convert to a Roth IRA (which are exempt from RMDs)Convert to a Roth IRA (which are exempt from RMDs)

• Current year conversions do Current year conversions do notnot count as RMDs count as RMDs• First money out of a traditional IRA is considered an First money out of a traditional IRA is considered an

RMD, so do the RMD before doing a Roth conversion if RMD, so do the RMD before doing a Roth conversion if over 70½. over 70½.

2.2.Direct Charitable Contributions – Direct Charitable Contributions – ifif extended to 2015 extended to 2015

3.3.QLACQLAC

QLACQLACQualified Longevity Annuity ContractQualified Longevity Annuity Contract

Effective July 1, 2014, the IRS approved QLACs as a way to Effective July 1, 2014, the IRS approved QLACs as a way to delay IRA required minimum distributions beyond age 70½ ! delay IRA required minimum distributions beyond age 70½ !

Details:Details: An insurance annuity inside your traditional IRAAn insurance annuity inside your traditional IRA Payouts (withdrawals) can be deferred up until age Payouts (withdrawals) can be deferred up until age

85 !85 ! Maximum premium paid for a QLAC: $125M or 25% Maximum premium paid for a QLAC: $125M or 25%

of IRAof IRA QLACs can “guarantee” you a lifetime incomeQLACs can “guarantee” you a lifetime income

Insurance company assumes market riskInsurance company assumes market risk Insurance company guarantees your incomeInsurance company guarantees your income

Reasons to Convert to a Roth IRAReasons to Convert to a Roth IRA

1.1. Roth funds are NOT subject to RMDs after age 70 ½ Roth funds are NOT subject to RMDs after age 70 ½

2.2. If you think income tax rates will rise in the futureIf you think income tax rates will rise in the future

3.3. Reduces taxation of Social Security in future yearsReduces taxation of Social Security in future years

4.4. Reduces Medicare premiums in future yearsReduces Medicare premiums in future years5.5. Exposure to AMT can be reduced in future yearsExposure to AMT can be reduced in future years

6.6. Avoiding higher income taxes after one spouse diesAvoiding higher income taxes after one spouse dies• Married joint tax rates are lower than single ratesMarried joint tax rates are lower than single rates• Pay tax now at lower rate: married jointPay tax now at lower rate: married joint

7.7. Large estates: pay income taxes now, reduces estate Large estates: pay income taxes now, reduces estate taxestaxes• Traditional IRA less income taxes = Value of Roth IRATraditional IRA less income taxes = Value of Roth IRA

8.8. Time is on the side of Roth IRAs (tax-free compounding Time is on the side of Roth IRAs (tax-free compounding of returns)of returns)

• Your lifetimeYour lifetime• Spouse’s lifetimeSpouse’s lifetime• Children’s lifetimeChildren’s lifetime

Roth IRA ConversionsRoth IRA Conversions

Especially useful if current year is a low income yearEspecially useful if current year is a low income year Short term incursion of taxesShort term incursion of taxes Long term tax savingsLong term tax savings Not only will earnings and withdrawals be tax-free to you, Not only will earnings and withdrawals be tax-free to you,

but also to your heirs “Stretch IRA”but also to your heirs “Stretch IRA” Careful long term planning is essentialCareful long term planning is essential

If age 70If age 70½ or older beware:½ or older beware:First amounts withdrawn from IRA each year count towards RMDsFirst amounts withdrawn from IRA each year count towards RMDsRMD amounts cannot be converted to a Roth IRARMD amounts cannot be converted to a Roth IRARoth conversions can only be done after current year’s RMD satisfiedRoth conversions can only be done after current year’s RMD satisfied

Roth IRA Conversion Strategy #1Roth IRA Conversion Strategy #1

Start-of-Year Strategy: Convert Annual Cash Need AmountStart-of-Year Strategy: Convert Annual Cash Need Amount Any retiree age 59½ to 70½ should consider this strategyAny retiree age 59½ to 70½ should consider this strategy Determine cash needed for year from Traditional IRADetermine cash needed for year from Traditional IRA Convert (transfer) that amount from Traditional IRA to Roth IRAConvert (transfer) that amount from Traditional IRA to Roth IRA Withdraw cash, as needed, during year from Roth IRAWithdraw cash, as needed, during year from Roth IRA Income tax on conversion: same as monthly withdrawalsIncome tax on conversion: same as monthly withdrawals Tax saving: current year investment earnings are in Roth (tax-Tax saving: current year investment earnings are in Roth (tax-

free) instead of Traditional (tax-deferred)free) instead of Traditional (tax-deferred)

Example:Example:Annual cash need:Annual cash need: $ 84,000$ 84,000Convert in January:Convert in January: $ 84,000$ 84,000Withdraw monthly:Withdraw monthly: $ 7,000$ 7,000Total Roth withdrawals:Total Roth withdrawals: $ 84,000$ 84,000Year end Roth balance:Year end Roth balance: $ 3,241* (future tax-free withdrawal)$ 3,241* (future tax-free withdrawal)

* 8% rate of return, withdrawals on first of each month* 8% rate of return, withdrawals on first of each month

Roth IRA Conversion Strategy #2Roth IRA Conversion Strategy #2

Larger Amount Strategy:Larger Amount Strategy: If you have a low income year, orIf you have a low income year, or

If you think future tax rates will be higherIf you think future tax rates will be higher

Be careful not to convert too much in a yearBe careful not to convert too much in a year Income tax rates are progressiveIncome tax rates are progressive High income can take away deductionsHigh income can take away deductions

Can adjust or reverse amount converted until Oct. 15 of Can adjust or reverse amount converted until Oct. 15 of followingfollowing year year

Roth IRA Conversion Strategy #3Roth IRA Conversion Strategy #3

IRA split, Multiple conversions, Keep the best performerIRA split, Multiple conversions, Keep the best performer

Example:Example:Traditional IRA value $500,000Traditional IRA value $500,000Split out two new traditional IRAs, $50,000 eachSplit out two new traditional IRAs, $50,000 eachConvert both new IRAs at start of yearConvert both new IRAs at start of yearInvest each new IRA differently, but use good strategy for eachInvest each new IRA differently, but use good strategy for eachAfter year endAfter year end**, see which IRA has best returns, see which IRA has best returns

#1 = $56,000, #2 = $51,000#1 = $56,000, #2 = $51,000 Retain #1 as a Roth IRARetain #1 as a Roth IRA Recharacterize #2 back to a traditional IRARecharacterize #2 back to a traditional IRA

You will be taxed on #1 only, at $50,000 even though now $56,000You will be taxed on #1 only, at $50,000 even though now $56,000Thus $6,000 will never be taxedThus $6,000 will never be taxed

** You actually have until October 15 of following year to decide ! You actually have until October 15 of following year to decide !

How About a Do-Over ?How About a Do-Over ?

Roth IRA Conversion and Do Over StrategyRoth IRA Conversion and Do Over Strategy

1.1. Convert Traditional IRA to a Roth IRAConvert Traditional IRA to a Roth IRA• All, or a portionAll, or a portion

2.2. Amount converted is taxableAmount converted is taxable

3.3. Conversion can be reversed (Recharacterization)Conversion can be reversed (Recharacterization)• If you later find that taxes are too much, orIf you later find that taxes are too much, or• Investments have not done wellInvestments have not done well• Eliminates taxable eventEliminates taxable event

Roth IRA WithdrawalsRoth IRA Withdrawals

Generally tax-free and no penaltiesGenerally tax-free and no penalties

However, two 5 year rules to be aware of:However, two 5 year rules to be aware of:1.1. Roth IRA contributionRoth IRA contribution

5 tax years since first contribution to any Roth IRA5 tax years since first contribution to any Roth IRA If you haven’t, start your lifetime clock now (make a If you haven’t, start your lifetime clock now (make a

Roth contribution or conversion)Roth contribution or conversion)2.2. Roth conversions:Roth conversions:

5 tax years since Roth conversion5 tax years since Roth conversion Each Roth conversion tracked separatelyEach Roth conversion tracked separately Conversion amounts are withdrawn first-in, first-outConversion amounts are withdrawn first-in, first-out If age 59-1/2+ this rule does If age 59-1/2+ this rule does notnot apply apply

3.3. Penalty: 10% of amount withdrawn, no regular income taxPenalty: 10% of amount withdrawn, no regular income taxWithdrawal ordering:Withdrawal ordering:

1.1. ContributionsContributions2.2. Conversion amountsConversion amounts3.3. EarningsEarnings

Investment Allocation in Today’s EconomyInvestment Allocation in Today’s Economy

Traditional Allocation for RetireesTraditional Allocation for Retirees Stocks: 60%Stocks: 60% Bonds: 40%Bonds: 40%

Today’s RealityToday’s Reality Interest rates are at historic lowsInterest rates are at historic lows Rates have only one direction to go in the future: UPRates have only one direction to go in the future: UP If interest rates go up, value of bonds goes DOWNIf interest rates go up, value of bonds goes DOWN Today, bonds have much more risk than in “normal times”Today, bonds have much more risk than in “normal times”

Alternatives to Bonds in Today’s EconomyAlternatives to Bonds in Today’s Economy Dividend paying “blue chip” stocksDividend paying “blue chip” stocks

Many have a higher yield than a 10-year Treasury BondMany have a higher yield than a 10-year Treasury Bond AnnuitiesAnnuities

Immediate or deferredImmediate or deferred Insurance company “guarantees” principle and interestInsurance company “guarantees” principle and interest Non-IRA money can get deferral of taxes until withdrawnNon-IRA money can get deferral of taxes until withdrawn QLACsQLACs

Investments: Something to ConsiderInvestments: Something to Consider

““Dividend Aristocrats”Dividend Aristocrats” S&P’s list of companies that have:S&P’s list of companies that have:

Paid a dividend for at least 25 consecutive years, andPaid a dividend for at least 25 consecutive years, and

Have raised their dividend rate for at least 25 consecutive Have raised their dividend rate for at least 25 consecutive yearsyears

These are stocks of large “Blue Chip” companiesThese are stocks of large “Blue Chip” companies

Payment and increases in dividends over such a long period is Payment and increases in dividends over such a long period is proof of profitability and a sustainable businessproof of profitability and a sustainable business

Dividends plus stock price appreciation equals great returnsDividends plus stock price appreciation equals great returns

Over a 10 year period, I have realized a Over a 10 year period, I have realized a 12%12% annual average annual average rate of return using these stocksrate of return using these stocks

Period includes 2008-2009 stock market meltdown !Period includes 2008-2009 stock market meltdown !

““Rule of 72”: 72 divided by 12 = portfolio doubling every 6 Rule of 72”: 72 divided by 12 = portfolio doubling every 6 years !years !

S&P 500 ten year average return = S&P 500 ten year average return = 7.74%7.74%

Estate Tax: Tax Relief Act of 2012Estate Tax: Tax Relief Act of 2012

Federal 2013 & afterFederal 2013 & after $5 million exclusion$5 million exclusion

Adjusted annually for inflationAdjusted annually for inflation 2014 amount is $5,340,0002014 amount is $5,340,000 Unlimited transfer amounts to surviving spouseUnlimited transfer amounts to surviving spouse Deceased Spouse’s Unused Exclusion (DSUE) can go to Deceased Spouse’s Unused Exclusion (DSUE) can go to

surviving spousesurviving spouse $5,340,000 x 2 = $10,680,000$5,340,000 x 2 = $10,680,000 MustMust file Estate Tax Return (706) to elect DSUE file Estate Tax Return (706) to elect DSUE This means file 706 even if estate less than This means file 706 even if estate less than

$5,340,000$5,340,000 Maximum 40% estate tax rateMaximum 40% estate tax rateGifts:Gifts: up to $14,000 annually excludable up to $14,000 annually excludable Excess of $14,000 requires Gift Tax return and amount Excess of $14,000 requires Gift Tax return and amount

reduces above estate tax exclusionreduces above estate tax exclusion

CaliforniaCalifornia Does Does notnot have an estate or gift tax have an estate or gift tax

(Don’t tell Jerry Brown)(Don’t tell Jerry Brown)

IRA: Tune Up & SuperchargeIRA: Tune Up & Supercharge©©

This presentation is for educational purposes only; it is not individual tax or investment advice. The presentation includes tax issues and financial This presentation is for educational purposes only; it is not individual tax or investment advice. The presentation includes tax issues and financial alternatives that individuals may wish to explore in more detail. Because of time constraints, this is only a quick summary. The slides are designed to be alternatives that individuals may wish to explore in more detail. Because of time constraints, this is only a quick summary. The slides are designed to be explained during the presentation. Use of slide copies without the oral presentation is not recommended. New and pending legislation may modify the explained during the presentation. Use of slide copies without the oral presentation is not recommended. New and pending legislation may modify the information shown on the slides. Attendees should consult with their personal financial advisor to determine whether any of the issues presented are information shown on the slides. Attendees should consult with their personal financial advisor to determine whether any of the issues presented are appropriate to their own situation. appropriate to their own situation. Use of these materials in any other manner or context is neither recommended nor authorized by the author. These Use of these materials in any other manner or context is neither recommended nor authorized by the author. These materials may not be copied without written authorization by the author.materials may not be copied without written authorization by the author.

© 2015 Herbert D. Farrington© 2015 Herbert D. Farrington

Herb Farrington, EA, CFPHerb Farrington, EA, CFP®® Cell: (714) 904-5825Cell: (714) 904-5825herbf76@msn.comherbf76@msn.com