In an article published in Bloomberg Tax’s Compensation Planning Journal on March 1, Bill Browning discusses preserving retirement accounts for middle-class families to protect the well spouse / surviving spouse in old age.
Planning options are available to protect families’ resources, as well as spousal impoverishment rules by state and relevant case laws that have changed the course of retirement planning. These planning options include staying in the company plan, rollover to target benefit type plan and annuitizing retirement accounts and savings. While discussing the latter, Browning breaks down the pros and cons of each option.
“With as much as we hear advisers talk about saving assets and funds for the next generation, the primary focus of crisis planning (after receiving care first) should be ensuring the ongoing financial independence of the community spouse,” says Browning.