Case Study #4:  Untapped Retirement Accounts & RMDs

Far too many American families avoid discussing important issues regarding their parents; especially when the discussion has financial implications.   However, proactive planning, across generations, can often lead to wise long-term decisions.

In this case study, we make the following planning assumptions:

• The couple, both age 72, are quite active and healthy. 
• Concerned about becoming a burden on the children or grandchildren
• Both receive a pension and Social Security that meets their income needs
• Would “pay for care” with untapped $1,000,000 in IRA Accounts
• Couple unaware of Required Minimum Distributions.
• Consider just $250,000 of the qualified funds.

Once the RMD situation is understood, which scenario would better address their planning needs?