November 2012

  • strict warning: Non-static method view::load() should not be called statically in /u01/web_sky902/www.mdria.com/public_html/sites/all/modules/views/views.module on line 1118.
  • strict warning: Declaration of views_handler_argument::options_validate() should be compatible with views_handler::options_validate($form, &$form_state) in /u01/web_sky902/www.mdria.com/public_html/sites/all/modules/views/handlers/views_handler_argument.inc on line 917.
  • strict warning: Declaration of views_handler_argument::query() should be compatible with views_handler::query($group_by = false) in /u01/web_sky902/www.mdria.com/public_html/sites/all/modules/views/handlers/views_handler_argument.inc on line 917.
  • strict warning: Declaration of views_handler_sort::options_validate() should be compatible with views_handler::options_validate($form, &$form_state) in /u01/web_sky902/www.mdria.com/public_html/sites/all/modules/views/handlers/views_handler_sort.inc on line 165.
  • strict warning: Declaration of views_handler_sort::options_submit() should be compatible with views_handler::options_submit($form, &$form_state) in /u01/web_sky902/www.mdria.com/public_html/sites/all/modules/views/handlers/views_handler_sort.inc on line 165.
  • strict warning: Declaration of views_handler_sort::query() should be compatible with views_handler::query($group_by = false) in /u01/web_sky902/www.mdria.com/public_html/sites/all/modules/views/handlers/views_handler_sort.inc on line 165.
  • strict warning: Declaration of views_handler_filter::options_validate() should be compatible with views_handler::options_validate($form, &$form_state) in /u01/web_sky902/www.mdria.com/public_html/sites/all/modules/views/handlers/views_handler_filter.inc on line 599.
  • strict warning: Declaration of views_handler_filter::query() should be compatible with views_handler::query($group_by = false) in /u01/web_sky902/www.mdria.com/public_html/sites/all/modules/views/handlers/views_handler_filter.inc on line 599.
  • strict warning: Declaration of views_plugin_pager_none::post_execute() should be compatible with views_plugin_pager::post_execute(&$result) in /u01/web_sky902/www.mdria.com/public_html/sites/all/modules/views/plugins/views_plugin_pager_none.inc on line 69.
  • strict warning: Declaration of views_plugin_query::options_submit() should be compatible with views_plugin::options_submit($form, &$form_state) in /u01/web_sky902/www.mdria.com/public_html/sites/all/modules/views/plugins/views_plugin_query.inc on line 181.
  • strict warning: Declaration of views_plugin_style_default::options() should be compatible with views_object::options() in /u01/web_sky902/www.mdria.com/public_html/sites/all/modules/views/plugins/views_plugin_style_default.inc on line 24.
  • strict warning: Declaration of views_plugin_row::options_validate() should be compatible with views_plugin::options_validate(&$form, &$form_state) in /u01/web_sky902/www.mdria.com/public_html/sites/all/modules/views/plugins/views_plugin_row.inc on line 136.
  • strict warning: Non-static method view::load() should not be called statically in /u01/web_sky902/www.mdria.com/public_html/sites/all/modules/views/views.module on line 1118.

Madrone Retirement Advisors, LLC

Holding real property in an IRA - the pros and cons.

Whether an IRA holds real property or financial securities, there are similar rules that apply, such as lack of a stepped-up basis at death and lack of long-term capital gains tax treatment.  However,  there are numerous other drawbacks that apply to the holding of real estate:

The non-deductible IRA.

IRS “pro rata” rule greatly reduces the benefit of contributing to a non-deductible IRA: Many people believe that if they are unable to make a Roth contribution due to income phase-outs, they can simply make a non-deductible IRA contribution and later convert that contribution to a Roth.  But it’s not that simple.

Roth IRAs and the Five-Year Rule

The five-year rule is an important consideration when deciding when to open your first Roth IRA.

Before you inherit an IRA.

For those inheriting a traditional IRA in the near future, funding the conversion cost with a gift may be an optimal strategy.

Estate planning and Roth conversions.

The long-term growth potential of Roth IRAs is greatly underestimated and has significant estate planning implications:  Because there are no minimum required withdrawals from a Roth IRA during the original owner’s lifetime, the long-term impact of compound growth can be striking.  For example, a $500,000 balance in a Roth IRA at age 45 can, at a fairly modest annual growth rate of 6% and no withdrawals, grow to a total of $3.8M by age 85 – all of which is tax-free.  If then left to a 45-year old heir, that heir would only be required to take annu

Does your 401(k) account include your employer's stock?

What to do if your 401(k) account includes employer (company) stock that has increased in value: Employees usually roll their entire 401(k) balance into an IRA when they retire or otherwise leave their employer, and eventually pay ordinary income tax on the withdrawals that are made from that IRA.  However, if your 401(k) account includes stock in the company you work for (Microsoft, for example)   and that stock has appreciated, you may want to roll the appreciated company stock into a taxable brokerage account, while rolling the non-company assets into an I

Maximizing the retirement account "stretch"

The decision as to who one’s beneficiaries of a retirement account will be has a critical impact on the ability to maximize the "stretch" - the number of years that a retirement account can grow tax-deferred (or tax-free in the case of the Roth IRA).  And maximizing the number of years that a retirement account can continue to grow is the key factor in determining how much wealth it can ultimately create, since even at 6% annual growth rate, the size of a retirement account can quadruple in 25 years.