Page 45 - BusinessWest June 13, 2022

Picture This Continued
Donation to CDH
Matthew Sosik, president and CEO of bank-
ESB, recently announced that the bank has
made a $500,000 challenge grant to support
the Emergency Department at Cooley Dickinson Hospital. The funds will be used to support Transforming Emergency Care: Campaign for
the Cooley Dickinson Emergency Department, a $19.76 million expansion, reconfiguration, and renovation effort to allow Cooley Dickinson to meet the ever-evolving emergency medicine needs of all members of the community, from infants to older adults. From left: Nancy Lapointe, bankESB senior vice president, retail banking; Dr. Lynnette Watkins, president and CEO of Cooley Dickinson Hospital; Sosik; and Karen Craig, assis- tant vice president, branch officer for bankESB’s King St., Northampton office
IRA
Continued from page 20
direct descendants under the majority age of 18 (although the 10-year clock starts ticking once they reach 18).
Unfortunately, this is not the end
of the ruling. When Congress passes laws, the IRS issues guidance on how to interpret the law. The IRS is currently proposing new regulations on how to interpret the 10-year withdrawal rule. Comments to the IRS were due on May 22, 2022, and then their findings will
be issued. What is at stake is whether any distributions at all need to be taken over the 10 years, or can the benefi- ciary wait until year 10 to fully liquidate an IRA.
The IRS may say that required mini- mum distributions need to be taken each year using the “at least as rapidly rule,” meaning that you may need to
Mistakes
Continued from page 21
ner, an estate attorney, and possibly an accountant. You and your team should discuss your options regarding a will, health care proxy, beneficiary choices, tax-efficient titling of assets, etc. They can help discuss the advantages and disadvantages of these choices.
Next, put the plan in place, and fol- low up to make sure it is implemented. Your team should be able to help here as well. Confirm that beneficiaries are correct, proper parties are named, titles are changed, etc. Oftentimes you will want to simplify your finances by con- solidating accounts, banks, etc. Finally,
“The IRS is currently proposing new regulations on how to interpret the 10-year withdrawal rule. Comments to the IRS were due on May 22, 2022, and then their findings will be issued.
For many, this subject may be dry and confusing, but it is too important to ignore. Try not to be caught off- guard because the financial penalties may be harsh. u
Barbara Tromblay is a financial advisor and CPA with Wilbraham- based Tromblay, CPA; (413) 596-
6992. Securities offered through LPL Financial. Member FINRA/SIPC. Advisory services offered through Trombley Associates, a registered investment advisor and separate entity from LPL Financial. This material
was created for educational and informational purposes only and is not intended as ERISA tax, legal or investment advice.
ance policies. Include account num- bers whenever possible, as well as phone numbers;
• List of service providers (not just your attorney and financial team, but things like your snow removal service, lawn company, etc.)
Family is wonderful. Let’s do what we can to help, and enjoy the summer. u
Michael Matty is the president
and heads the investment
policy committee of St. Germain Investment Management; mmatty@ stgermaininvestments.com www. stgermaininvestments.com
”
calculate your own life expectancy as well as the deceased owners and take
a payment “at least as rapidly” as the deceased would have. Also, when the IRS finally issues their guidance, it will be retroactive. Will it apply retroactively to 2020 and 2021 RMDs? It is hard to believe that they will subject taxpay- ers to the hefty penalties that go along with missed RMDs, specifically a 50% penalty.
What should people do that have
recently inherited IRAs? Seek out advice from your accountant or finan- cial planner and possibly wait until later in the year to take a distribution after the ruling is clarified. Again, the law for the Secure Act was passed in 2019. We are waiting for the IRS to fur- ther interpret the way they see the rules and we all have to act accordingly. This situation has been called “a nightmare” and “a mess” by many in the financial industry.
BusinessWest
WOMEN IN BUSINESS
JUNE 13, 2022 45
“You and your team should discuss your options
regarding a will, health care proxy, beneficiary choices,
tax-efficient titling of assets, etc. They can help discuss the
”
ing sure there is easy access to your team, you can further help by:
• Listing things like your usernames and passwords where they can find them. This is very important in the digital age;
• List your assets, liabilities, and beneficiaries. Don’t forget life insur-
advantages and disadvantages of these choices.
make sure someone knows where to find the details of this plan, contact info for your team, and all your impor- tant documents. You may have spent your entire life weaving a complicated financial position, now is the time to start simplifying.
In addition to simplifying and mak-