BRP/Grenier Financial Services

Due to various state regulations and registration requirements concerning the dissemination of information regarding investment products and services, we are currently required to limit access of the following pages to individuals residing in states where we are currently registered.

A broker/dealer, investment advisor, BD agent or IA rep may only transact business in a particular state after licensure or satisfying qualifications requirements of that state, or only if they are excluded or exempted from the states broker/dealer, investment adviser, or BD agent or IA rep requirements, as the case may be; and follow-up, individualized responses to consumers in a particular state by broker/dealer, investment adviser, BD agent or IA rep that involve either the effecting or attempting to effect transactions in securities or the rendering of personalized investment advice for compensation, as the case may be, shall not be made without first complying with the states broker/dealer, investment adviser, BD agent or IA rep requirements, or pursuant to an applicable state exemption or exclusion.

Investments products and services available only to residents of:

AZ, CA, CO, CT, DE, FL, GA, KS, MA, MD, ME, MI, MT, NC, NH, NJ, NM, NY, OH, PA, TX, VA, VT and WA.

I acknowledge that I am a resident of one of the states listed above.

I am not a resident of one of the states listed above.

Please Note: This website may use a cookie. A cookie is a small text file that gets stored on your PC when you click "Accept" above. Our cookie does not include any personal information about you, it only stores your answer to the question above, "Accept" or "Decline," so you can freely view our website. The cookie is set to automatically expire (i.e. disappear) at the end of a 30-day period.

BRP/Grenier Financial Services
1441 Main Street, Suite 1050
Springfield, MA 01103
phone: 413-736-6712
fax: 413-736-6712
info@brpgrenier.com

News & Articles

"Gifts From Uncle Sam" Part II

November 01, 2006

by R. Patricia Grenier, CFP®, CSA

Uncle Sam deserves another "thank you".

Three additional changes will take place effective after December 31, 2006:

  • The new bill allows for workers to receive investment advice regarding their various company-sponsored options. However, the investment advisor(s) and investment manager(s) must meet certain exemption qualifications.6
  • A major provision of the ACT is that it will permit non-spouse beneficiaries to do a direct Trustee to Trustee transfer of the inherited retirement plan into a properly titled beneficial IRA. In the past, the non-spouse beneficiary had to withdraw the monies within a maximum period of 5 years and pay the taxes on the entire amount. Now, non-spouse beneficiaries can spread the distributions over their life expectancy and spread the tax liability over many years.

This new rule creates many estate and tax planning benefits.  Same sex partners, children, grandchildren, and other non-spouse beneficiaries can now enjoy the same planning benefits that only spouses were able to.  This single provision is by far the biggest and best part of the new law. 7, 8

  • Another provision is that individuals will now be able to direct the Department of Treasury to directly deposit any portion of their tax refund into an IRA making IRA contributions easier. 9   

Beginning in 2008, individuals will be able to directly roll their qualified plans, 403(b) or Governmental 457 Plan into a ROTH IRA to avoid having to first place the assets in a conduit IRA.10

Another big "thank-you" is owed to Congress for a provision signed into law by President Bush on May 17, 2006.  This provision eliminates the eligibility rules for ROTH IRA's.  But, this provision is not effective until 2010.

Under the current rule, taxpayers with Modified Adjusted Gross Income (MAGI) over $100,000 or who had a tax filing status of married filling separate were not eligible to convert to a ROTH IRA.  In addition, if converted, the conversion income would be taxed in the year of the conversion.  That will also change for 2010.

For conversions done in 2010, the taxes can be spread evenly over 2 years and included in income for 2011 and 2012!!  This is like getting an interest free loan to build a tax-free savings account.11

Uncle Sam is making it quite evident that a secure financial retirement is the responsibility of each and everyone of us.  We now have higher contribution limits, more flexibility and it is easier then ever to save for retirement.

The information presented is general in nature and should not be considered legal or tax advice.  You should consult your legal or tax advisor for information concerning your own specific tax situation.

6  Big Changes for your 401(K), retirement - MSN Money

7  "New Law Eases Taxes On Inherited 401(K)s WSJ, August 23,2006

8  Ed Slott's IRA Advisor - "The Protection Act of 2006 New IRA and Plan Provisions", September 2006, pages 2-3

9  www.Oppenheimerfunds.com/J2cc/www/targeted copy/advisorpage/article/list_08-25-06

10 www.Oppenheimerfunds.com/J2cc/www/targeted copy/advisorpage/article/list_08-25-06

11  Ed Slott's IRA Advisor, "New Tax Eliminates Eligibility Rules for ROTH IRA Conversion, August 2006, pages 2-3

Pat Grenier is a General Partner with BRP/Grenier Financial Services in Springfield, MA. Securities offered through Cadaret, Grant and Co., Inc., Member FINRA/SIPC. BRP/Grenier and Cadaret, Grant and Co., Inc. are separate entities.

Pat can be contacted by phone at (413) 736-6712, or email her at pat@brpgrenier.com

Back

Plant your first seed today.
Call 413-736-6712 for an appointment.
You will be our guest for the first consultation.

This article appears in the November 2006 issue of Western Mass Business Woman.

This article appears in the November 2006 issue of Western Mass Business Woman.