SOME DOs AND DON’Ts FOR IRA PLANNING:

1. Do carefully evaluate the circumstances of the client for the appropriate choice of traditional IRA or Roth IRA.
2. Do analyze the possibility of income planning to avoid the traps of AGI limitations.
3. Do encourage your clients to start accumulating as early as possible to take advantage of the magic of compounding.
4. Don’t be trapped into using standard IRA forms for clients who need customized planning for multiple beneficiaries.
5. Don’t overlook the use of revocable and irrevocable trusts with IRAs to add tax advantage, greater value, buildup, and flexibility in beneficiary designation to the client’s estate planning.
6. Do advise the client that there are critical choices for election of payouts and designation of beneficiaries which must be made in a timely fashion.
7. Don’t overlook the benefits of a Roth IRA in correcting flaws or beneficiary problems in estate planning.
8. Don’t be afraid to ask for help in sorting out the problems in this increasingly complicated area.