Products March 18, 2019

Watson Authors 403(b) Plan eSource for ERISApedia.com

"We believe that The 403(b) Plan eSource will be the ‘go-to’ resource for 403(b) professionals and will allow 403(b) professionals to find answers to their compliance questions easily and quickly,” says Timothy McCutcheon, JD, CPA, MBA, publisher of ERISApedia.com.

Reported by

ERISApedia.com announced the release of The 403(b) Plan eSource, authored by industry expert S. Derrin Watson, J.D., APM.

Timothy McCutcheon, J.D., CPA, MBA, publisher of ERISApedia.com says, “We found that the market needed a comprehensive, easy-to-understand reference book on 403(b) plans. We believe that The 403(b) Plan eSource will be the ‘go-to’ resource for 403(b) professionals and will allow 403(b) professionals to find answers to their compliance questions easily and quickly.”

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

Watson says it’s easy to update the book as new guidance is released, or as questions from ERISApedia subscribers reveal areas that need to be explored.

Watson has been answering questions over the past year about 403(b) and other plans in the ERISApedia.com “Ask the Author” service. In January, the firm announced he had edited and selected over 400 responses to subscribers to include in its Qualified Plan eSource (QPeS).
Client Service March 18, 2019

Individuals Concerned About Impact of RMDs on Taxes

Nearly one-third (32%) of individuals surveyed by Allianz Life Insurance Company of North America say they have difficulty understanding how required minimum distributions could impact their overall tax obligation.

Reported by

Many Americans say understanding and managing the impacts on taxes resulting from required minimum distributions (RMDs) is top of mind, according to a study by Allianz Life Insurance Company of North America.

The RMD Options Study asked high net worth consumers ages 65 to 75 about their opinions and behaviors with RMDs, and found that most consumers want to reduce the impact RMDs have on their taxes. The vast majority (95%) said it is very important to minimize their tax burden in retirement, yet nearly one-third (32%) say they have difficulty understanding how RMDs could impact their overall tax obligation. Eighty-three percent said they hate paying taxes on their RMDs that come out of most tax-deferred retirement plans, which are treated as income for tax purposes.

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

Many respondents worry that their RMDs may push them into a higher income tax bracket. The study found that 61% of people are concerned about this, and worry they will end up paying more taxes overall.

While 67% of consumers say they have a good plan to minimize the impact of taxes on their retirement income overall, that still leaves one-third who do not have a strategy in place. “There are many different factors to consider, so talk to your financial professional for help with your RMD strategy,” suggests Kelly LaVigne, vice president of advanced markets, Allianz Life.

The RMD Options Study was conducted in February/March 2018, and included a nationally representative sample of 805 respondents ages 65 to 75 with retirement savings of $500,000 if single or $750,000 if married and who are the primary financial decision maker or share equally in decisions.

«