Cook Financial Group

10 common IRA mistakes

10. Trying to do it by yourself

Don't be afraid to seek assistance and guidance from a financial professional. He or she has the experience to help you make the best decisions based on your individual needs, preferences, and goals. You also may wish yo consult with:

* An insurance planner, who can help you with a range of insurance products, including life, disability, and long-term care insurance.

For more information contact us @ 225-439-7077 or 504-615-5750. www.cookfinancialgroup.com

10 common IRA mistakes

8. Overlooking income-tax deductions with inherited IRAs

If a person you inherited the IRA from owed estate taxes, you may be able to use a deduction for income in respect of a decedent to lower the taxes you owe. When estate taxes are paid based on IRD , the beneficiary may have the right to take an income -tax deduction equal to the amount of estate taxes attributable to the IRD.

For more information calls us @ 225-439-7077 or 504-615-5750. www.cookfinancialgroup.com

10 common IRA mistake

4. Falling to name a beneficiary

It's important to know that when an IRA owner dies, the assets can directly pass to the designated beneficiary, avoiding the lengthy probate process. This makes it essential that beneficiary designations are accurate and up to date. The IRA beneficiary designation form could be one of your most important estate planning documents. It's also prudent to name a contingent beneficiary on your accounts. If the primary beneficiary is deceased and a contingent beneficiary is not named, the IRA custody agreement will generally invoke a default mechanism that will distribute the funds to your estate, where they will become subject to your creditors and lose many of the income-tax advantage of the IRA.

10 common IRA mistakes

1.Making common rollover mistakes

Many people make mistakes when rolling over thier funds. You have 60 days to put rollover money into an IRA or you risk losing the tax-deferred status of the investment.There are two types of rollovers: direct and indirect.

* A direct rollover is when the financial institution that holds your old IRA directly deposits your funds into the financial institution that holds your new IRA.

* An indirect rollover is when the financial institution that holds your old IRA issues a check made payable to you. You then deposit those funds into your new IRA.

A direct rollover is the easiest way to ensure that your funds are transferred in a timely manner.