My grandfathers Financial advisor has told him that when he reaches 90, he has to change his investments for tax reasons,. He said something about fedral gov. will force distribution... something like that. AND, that he may only have 10, 000. in the bank (combined check and savings). He had to not renew a CD, because it was not in the right type of account for him. Is this legit?
2007-06-18 05:51:55 · 3 answers · asked by Erica E 1 in Business & Finance ➔ Investing
Your grandfather may also be invested in a varriable annuity.. I have heard of some that force annuitization at a certain age.
have you seen a copy of his brokerage statement.? do you know what his holdings are?
The only other forced distributions would have started when he turned 70 1/2 ... Required minimum distributions every year from an IRA... but even those can be made "in kind" using existing securities.
2007-06-18 06:26:42 · answer #1 · answered by Ryan S 3 · 1⤊ 0⤋
If that's really what the advisor said, he should find a new tax advisor.
If he has money in tax-deferred retirement plans, then there are forced distributions - but those start at 70-1/2, not at 90.
2007-06-18 05:58:35 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Yes, there is something. My grandfather ran into this. Also, since he passed away after age 90 there were special considerations. Can't tell you what it is, but there is something here for you to reseach. I have actually had great experience with the IRS website for answers such as this.
Good luck
2007-06-18 11:06:02 · answer #3 · answered by PunknPup 1 · 0⤊ 0⤋