Elderlaw News January 2011
- Obama Signs Tax-Cut Bill Setting Estate Tax Exemption at $5 Million for Two Years
- Federal Program Helps Nursing Home Residents Move Home
- Do Surviving Spouses Have a Right to a 401(k) or an IRA?
- As Predicted, Social Security Closes Door on Benefits ‘Do-Over’ Strategy
To Clients, Colleagues and Friends:
Congress has passed and President Obama has signed into law the deal the President struck with Congressional Republicans extending the Bush tax cuts. The legislation restores the estate tax for two years at a 35 percent tax rate, with estates up to $5 million exempt from paying any tax ($10 million for couples).
Once someone enters a nursing home, it isn’t always easy to move out again. While some residents may prefer nursing home care to living on their own, others would rather be independent. For residents who want to move out but need some assistance to live on their own, there may be help available.
When choosing a beneficiary for a retirement plan, it is important to understand how your spouse will be treated under the plan. Surviving spouses are treated differently under 401(k)s and individual retirement accounts (IRAs). While a 401(k) provides protections for a surviving spouse, an IRA does not.
The Social Security Administration has eliminated a loophole that had allowed Social Security recipients to start receiving benefits when they first became eligible without being permanently locked into the lower benefit level.