The stretch IRA is dead

The stretch IRA is dead

Investment news and analysis for financial advisers. Extensive coverage and expert comment on important topics in the financial advisory industry. Twitter shares climbed more than 7% Wednesday after the company reported earning some $1.29 billion in revenue during the fourth quarter of 2020. Companies News explorer – Search Regulatory news, RNS Search, via Company or code, Index, Industry Sector, Headline type, Release date and Source Supreme Cannabis Company stock is trading higher today ahead of earnings as the market anticipates U.S. legalization.

The stretch IRA era is over.

The SECURE Act is the law for 2020 and beyond. Advisers are already scurrying to explain the retirement rule changes to clients, especially those with large IRAs who had planned on a stretch IRA for their heirs. We are receiving an avalanche of questions on exactly how and when this major change will be applied.

The SECURE Act ends the stretch IRA. All of those plans have to be reviewed and probably revised. Under the now “old rules” (before 2020), an individual designated beneficiary could extend post-death “stretch IRA” required minimum distributions over his lifetime. A young grandchild might have a 70-year payout period. But no more. The SECURE Act eliminates the stretch IRA and replaces it with a 10-year payout for most beneficiaries.

The clients most affected are those with the largest IRAs who had planned on leaving the lion’s share of those accounts to extend over the lives of their children and grandchildren. This especially includes any clients who named a trust as their IRA beneficiary. These trusts will not work well under the new rules. These estate plans need to be readdressed immediately.

1. Are current stretch IRAs for those who died before 2020 still good? Yes, they are grandfathered, but only until the beneficiary dies, so payouts to the successor beneficiary (the beneficiary’s beneficiary) will be limited to 10 years.

Example:

An IRA owner died in 2019 and left his IRA to his grandchild. The grandchild’s stretch period is 60 years. That schedule is grandfathered and remains the same. When the grandchild dies, though, any funds remaining in the inherited IRA that go to the grandchild’s beneficiary (the successor beneficiary) will have to be paid out within 10 years. The successor beneficiary is not grandfathered.

2. Does this kill stretch IRAs for all beneficiaries? No. The law carves out exemptions for certain beneficiaries now called eligible designated beneficiaries, or EDBs. Eligible designated beneficiaries are:

• Surviving spouses.

• Minor children, up to majority – but not grandchildren.

• Disabled individuals – under the strict IRS rules.

• Chronically ill individuals.

• Individuals not more than 10 years younger than the IRA owner (generally, siblings around the same age).

The old stretch rules still apply to these beneficiaries, the same as before, but only while the beneficiaries still qualify as EDBs. 

Example:

An IRA owner dies in 2020 and leaves his IRA to his minor child. The minor child can still stretch the same as before, but only until that child reaches the age of majority (which is age 18 for most states). Once the child reaches majority, he is no longer an EDB, and then is subject to the new 10-year rule.

3. Do grandchildren qualify as minors for the EDB exemption? No. The law is clear on this. The EDB exemption from the 10-year rule is only for the child of the IRA owner or plan participant.

Example:

An IRA owner dies in 2020 and leave her IRA to her grandchild. The grandchild, no matter what age, will be subject to the 10-year payout after death, unless that grandchild qualifies as disabled or chronically ill. It’s likely that a trust was named for that grandchild. That trust too, is subject to the 10-year rule. That’s probably not what the client wanted. The reason she named a trust was to protect those funds for the grandchild. Certain trusts may still do this but they would all still be limited to a 10-year payout.

4. How do the RMDs work under the 10-year rule? Are there RMDs during the 10 years? No. Under the 10-year rule, there are no RMDs during the 10 years. Instead, the entire IRA balance must be emptied by the end of the 10 years. Beneficiaries can withdraw any amounts they wish over the 10 years, so beneficiaries do have some planning flexibility during the 10 years to withdraw funds when it best fits their tax situation during that time.

5. Do Roth IRAs still qualify for the stretch? No. Inherited Roth IRAs are subject to the same 10-year payout rule, except that the distributions will generally be tax-free. Advisers will want to look at doing more Roth conversions to eliminate what could be a big tax bill within 10 years after death.

[More: There is no opportunity cost with a Roth conversion]

For more information on Ed Slott, Ed Slott’s 2-Day IRA Workshop and Ed Slott’s Elite IRA Advisor Group, please visit www.IRAhelp.com

Source: www.investmentnews.com


Twitter stock climbs after company reports $1.29 billion in revenue last quarter

Twitter stock climbs after company reports $1.29 billion in revenue last quarter

The social media giant said it expects to grow its headcount by 20% in 2021.

Shares of Twitter climbed more than 7% Wednesday after the company reported a record $1.29 billion in revenue during the fourth quarter of 2020, despite finding itself at the center of political turmoil in recent months.

Revenue increased 28% year-over-year and beat Wall Street expectations. In addition, the social media giant reported that its monetizable daily active usage base grew 27% last quarter to total 192 million.

“2020 was an extraordinary year for Twitter,” Jack Dorsey, Twitter’s chief executive, said in a statement Tuesday. “We are more proud than ever to serve the public conversation, especially in these unprecedented times.”

Dorsey also said the recent product changes “are promoting healthier conversations,” adding that the company is “excited about our plans to continue innovating in 2021.”

Still, the company reported a net loss of $1.14 billion in 2020 amid the pandemic-induced economic downturn.

Looking forward, however, the company said it expects to grow its headcount by more than 20% in 2021.

In the final months of 2020, Twitter teetered on a political tripwire as it navigated how to combat election misinformation on its site — including from former President Donald Trump himself — in the aftermath of the U.S. presidential election.

In January, a political firestorm erupted as Twitter and other social media companies made the decision to permanently ban Trump from their platforms.

Without naming names, Dorsey alluded to this decision during an earnings call Tuesday, saying that the platform is “much larger than any one topic or any one account.”

ABC News

Source: abcnews.go.com

Author: ABC News


Broker-dealer Data Center - InvestmentNews

Broker-dealer Data Center – InvestmentNews

View More

View More

View More

View More

Purchase the complete set of our independent broker-dealer data and profiles in an Excel spreadsheet.

For comments or suggestions about the BD Data Center, please contact us.

Disclaimer: All data and information is the property of InvestmentNews and is protected by copyright and other intellectual property laws. All rights are reserved by InvestmentNews. The data may only be used for internal business use such as to develop a mailing list but the data may not be resold, republished, redistributed, sublicensed or publicly displayed on a web site without the permission of InvestmentNews. All information contained within was obtained through InvestmentNews’ annual independent B-D surveys.

Source: data.investmentnews.com


Buy or Sell Resonant Inc. (RESN) Stock Now | Don’t Try to Be a Top Gun

Buy or Sell Resonant Inc. (RESN) Stock Now | Don’t Try to Be a Top Gun

Resonant Inc. (NASDAQ:RESN) went up by 0.53% from its latest closing price compared to the recent 1-year high of $7.81. The company’s stock price has collected 15.11% of gains in the last five trading sessions. Press Release reported 15 hours ago that Resonant Provides Preliminary Full Year 2020 Financial Results, Revenues Increase Over 330% to a Record $3.2 Million

Plus, the 36-month beta value for RESN is at 2.55. Opinions of the stock are interesting as 5 analysts out of 5 who provided ratings for Resonant Inc. declared the stock was a “buy,” while 0 rated the stock as “overweight,” 0 rated it as “hold,” and 0 as “sell.”

Sponsored

The average price from analysts is $5.05, which is -$2.49 below the current price. RESN currently public float of 48.92M and currently shorts hold a 11.22% ratio of that float. Today, the average trading volume of RESN was 2.01M shares.

RESN stocks went up by 15.11% for the week, with a monthly jump of 58.07% and a quarterly performance of 226.41%, while its annual performance rate touched 316.57%. The volatility ratio for the week stands at 12.41% while the volatility levels for the past 30 days are set at 12.17% for Resonant Inc.. The simple moving average for the period of the last 20 days is 24.90% for RESN stocks with a simple moving average of 166.74% for the last 200 days.

Many brokerage firms have already submitted their reports for RESN stocks, with Stifel repeating the rating for RESN by listing it as a “Buy.” The predicted price for RESN in the upcoming period, according to Stifel is $2.20 based on the research report published on February 28th of the previous year 2020.

Craig Hallum, on the other hand, stated in their research note that they expect to see RESN reach a price target of $4, previously predicting the price at $5. The rating they have provided for RESN stocks is “Buy” according to the report published on May 09th, 2019.

After a stumble in the market that brought RESN to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -3.46% of loss for the given period.

Volatility was left at 12.17%, however, over the last 30 days, the volatility rate increased by 12.41%, as shares surge +64.99% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +241.18% upper at present.

During the last 5 trading sessions, RESN rose by +15.11%, which changed the moving average for the period of 200-days by +226.41% in comparison to the 20-day moving average, which settled at $6.19. In addition, Resonant Inc. saw 184.53% in overturn over a single year, with a tendency to cut further gains.

Reports are indicating that there were more than several insider trading activities at RESN starting from Carberry Marybeth, who sale 4,000 shares at the price of $4.00 back on Jan 05. After this action, Carberry Marybeth now owns 72,877 shares of Resonant Inc., valued at $16,000 using the latest closing price.

Holmes George B, the Chief Executive Officer of Resonant Inc., sale 55,750 shares at $2.17 during a trade that took place back on Dec 02, which means that Holmes George B is holding 426,796 shares at $121,033 based on the most recent closing price.

Current profitability levels for the company are sitting at:

  • -4083.54 for the present operating margin
  • The net margin for Resonant Inc. stands at -4071.84. The total capital return value is set at -169.93, while invested capital returns managed to touch -172.43. Equity return is now at value -141.20, with -102.20 for asset returns.

    Based on Resonant Inc. (RESN), the company’s capital structure generated 27.38 points at debt to equity in total, while total debt to capital is 21.49. Total debt to assets is 14.72, with long-term debt to equity ratio resting at 21.10. Finally, the long-term debt to capital ratio is 16.57.

    When we switch over and look at the enterprise to sales, we see a ratio of 85.92, with the company’s debt to enterprise value settled at 0.04. The receivables turnover for the company is 5.27 and the total asset turnover is 0.03. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.76.

    Source: newsheater.com

    Author: By Daisy Galbraith


    News by MONKS INVESTMENT TRUST PLC Company or code - between 10 November 2020 and 10 February 2021 Time period News explorer

    News by MONKS INVESTMENT TRUST PLC Company or code – between 10 November 2020 and 10 February 2021 Time period News explorer

    News Explorer

    Clear filters

    Apply filters

    Company or code matches MONKS INVESTMENT TRUST PLC

    Time period matches between 10 November 2020 and 10 February 2021

    Sort by

    Sort by most recent

    RNS

    10 February 2021

    16:45:05

    1,436.00

    RNS

    09 February 2021

    17:17:39

    1,436.00

    RNS

    08 February 2021

    16:46:21

    1,436.00

    RNS

    05 February 2021

    16:37:21

    1,436.00

    RNS

    04 February 2021

    16:55:10

    1,436.00

    RNS

    03 February 2021

    16:50:44

    1,436.00

    RNS

    02 February 2021

    17:15:45

    1,436.00

    RNS

    01 February 2021

    16:57:54

    1,436.00

    RNS

    01 February 2021

    10:58:41

    1,436.00

    RNS

    26 January 2021

    16:39:40

    1,436.00

    RNS

    21 January 2021

    16:45:41

    1,436.00

    RNS

    20 January 2021

    17:08:09

    1,436.00

    RNS

    08 January 2021

    16:38:52

    1,436.00

    RNS

    07 January 2021

    16:47:39

    1,436.00

    RNS

    06 January 2021

    16:37:54

    1,436.00

    RNS

    05 January 2021

    16:41:37

    1,436.00

    RNS

    04 January 2021

    17:17:43

    1,436.00

    RNS

    04 January 2021

    17:09:32

    1,436.00

    RNS

    30 December 2020

    16:02:43

    1,436.00

    RNS

    18 December 2020

    16:06:32

    1,436.00

    Source: www.londonstockexchange.com


    SPRWF Stock: Why the Supreme Cannabis Company (FIRE) Is Soaring Today

    SPRWF Stock: Why the Supreme Cannabis Company (FIRE) Is Soaring Today

    Penny stock Supreme Cannabis Company (OTCMKTS:SPRWF) was up nearly 25% in intraday trading today, yet another beneficiary of bullish momentum in the sector at large in recent weeks. More than 25.5 million shares had traded on the day at time of writing, compared with an average daily trading volume of 3.1 million.

    Marijuana plants growing in a greenhouse.

    Supreme Cannabis is a Canadian producer of medical cannabis, operating primarily in that market but additionally in Israel and Australia. The company also trades on the Toronto Stock Exchange under the ticker FIRE.

    Founded in 1979, Supreme Cannabis Company has a market capitalization of $273 million and recently raised nearly $23 million via overnight marketed public offering.

    The boost in SPRWF comes at a time of increased investment in cannabis equities, as the prospect of U.S. legalization becomes more likely. It also appears that Reddit investors have turned their attention from heavily shorted stocks to cannabis, per InvestorPlace.com’s William White. Sector peer and fellow penny stock Sundial Growers (NASDAQ:SNDL) has also seen serious upward momentum this week, suggesting an appetite for lower-priced equities in the sector.

    Supreme Cannabis is set to report earnings for the second quarter of fiscal year 2021 in just two days. The company previously beat out analyst expectations for Q1 FY 2021. In November 2020, analysts suggested SPRWF was close to the “breakeven point” and would turn a profit starting in 2021.

    On the date of publication, Vivian Medithi did not have (either directly or indirectly) any positions in the securities mentioned in this article.

    Article printed from InvestorPlace Media, https://investorplace.com/2021/02/sprwf-stock-why-the-supreme-cannabis-company-fire-is-soaring-today/.

    ©2021 InvestorPlace Media, LLC

    Source: investorplace.com

    Author: By

    Vivian Medithi


    The stretch IRA is dead

    Leave a Comment