Retirement

Any transfer of assets to an Inter Vivos Irrevocable Trust will not automatically create a 60 month period of ineligibility for Medicaid. When a transfer to a trust is made the period of ineligibility will be calculated by taking the dollar value of the asset transferred and dividing it by the average monthly cost of a nursing home as determined by the Department of Social Services in your area. Not all transfers to a trust will automatically create a 60 month period. There can be transfers made to a trust which create periods of ineligibility of less than 36 months. Speak to your local CPA or an elder law attorney for more information on trust transfers and Medicaid.

A gift made pursuant to the Federal Estate and Gift Tax exclusion for gifts of $14,000 per year per person does create a period of ineligibility for Medicaid. You may make a gift of $14,000 or less per year to any person without creating a gift tax but the gift would still create a period of ineligibility for Medicaid which will be determined by utilizing the following formula. The dollar value of the asset transferred and dividing it by the average monthly cost of a nursing home as determined by the Department of Social Services for your area. This is not the actual average monthly cost of a nursing home in your area but the rate as established by the Department of Social Services. The actual cost is probable significantly higher. Speak to your local CPA or elder law attorney for more information on a gift or transfer and Medicaid.

A defined benefit pension plan is a major type of pension plan in which an employer promises a specified monthly benefit on retirement that is predetermined by a formula based on the employee's earnings history, tenure of service and age, rather than depending on investment returns. The most common type of formula used is based on the employee’s terminal earnings. Under this formula, benefits are based on a percentage of average earnings during a specified number of years at the end of a worker’s career. In the private sector, defined benefit plans are typically funded exclusively by employer contributions. For very small companies with one owner and a handful of younger employees, the business owner generally receives a high percentage of the benefits. In the public sector, defined benefit plans often require employee contributions.

A Defined benefit plan is a pension plan in which the sponsor agrees to make specified dollar payments to qualifying employees.
The pension obligations are effectively the debt obligation of the plan sponsor.

Yes. The IRS lets you make changes from Roth IRAs to regular IRAs and back, more than once. After you re-characterize a Roth IRA to a regular IRA, you can convert it again but not until the following year, or thirty days later, whichever takes longer.

No. You are allowed to re-characterize your Roth IRA to a conventional IRA up until the final due date of the income tax return. This means the due date plus extensions translate from April 15th to potentially Oct 15th.

Yes. If you converted a conventional IRA to a Roth IRA, and now want to reconvert it back to a conventional IRA, you may do so with limitations. When you changed the IRA to a Roth IRA, it is termed a "conversion".
When you change it back from a Roth IRA to conventional IRA it is termed a "re-characterization".
The IRS has imposed a waiting period before a reconversion may be made. You may not convert to a ROTH IRA, re-characterize to a traditional IRA and Reconvert the same funds to a Roth IRA in the same calendar year.
You must wait more than 30 days from the date of the re-characterization before a valid reconversion may be made.
You may also file an amended return (IRS Forms 1040X with Form 8606) to make this re-characterization.

The website is http://www.socialsecurity.gov/pgm/survivors.htm.
To apply for your Survivor's Social Security benefits or Retirement benefits, call 1-800-772-1213. The hours of use are between 7 a.m. and 7 p.m., Monday through Friday.
After answering some questions, a completed application will be mailed to the applicant for their signature and possible copies of additional required documents, such as marriage certificate or divorce papers.

On traditional IRA's, the gains realized over the years in the form of capital gains, dividends, and interest are deferred and not taxable until you take IRA distributions. When you do take the IRA distribution, the amount is considered ordinary income and taxed as such, and not taxed as capital gains.