BALTIMORE, Jan. 31 /PRNewswire-FirstCall/ -- T. Rowe Price has developed a
new guide to help beneficiaries better understand their distribution options,
legal obligations, and deadlines when inheriting assets from a traditional
IRA, SEP-IRA, Simple IRA, or 403(b) account. Available for free, The T. Rowe
Price Guide for IRA and 403(b) Account Beneficiaries can be downloaded at
http://www.troweprice.com/epg or ordered by calling 1-800-541-1532.
The guide uses charts and clear, straightforward text to explain:
-- Beneficiary basics: Covers the essential steps and deadlines to get
started, including tax implications and an explanation of when
required minimum distributions must be taken and how they are
calculated.
-- Options that keep assets tax-deferred: Shows both spouse and non-
spouse beneficiaries how they can maintain the tax-deferred status
of their inherited assets. Reviews the pros and cons for spousal
beneficiaries of rolling over assets to an IRA in their name or
leaving the assets in the deceased owner's account.
-- Special considerations for multiple beneficiaries: Discusses the
advantages of opening separate accounts for each beneficiary.
-- Investment ideas if current income isn't needed: Provides an
overview of investment options - including tax-efficient mutual
funds, tax-deferred annuities, donor-advised funds, and 529 College
Savings Plans - investors may want to consider if they must receive
required distributions but do not currently need the income.
The guide also discusses the issues related to taking an immediate cash
distribution of your share of the assets or disclaiming some or all of your
share in favor of other beneficiaries.
"The inheritance distribution process can be complicated, with numerous
choices and deadlines to keep track of in order to qualify for certain options
and long-term tax benefits," said Christine Fahlund, a senior financial
planner at T. Rowe Price. "Since some options could result in considerably
more after-tax dollars over the long term, the guide can help heirs make more
informed decisions when inheriting IRA assets. It can also help educate IRA
owners - who are in the process of naming their beneficiaries - about the
decisions their heirs will have to make."
Founded in 1937, Baltimore-based T. Rowe Price (Nasdaq: TROW) is a global
investment management firm with $212 billion in assets under management as of
September 30, 2004. The firm provides a broad array of mutual funds,
sub-advisory services, and separate account management for individual and
institutional investors, retirement plans, and financial intermediaries. The
company also offers a variety of sophisticated investment planning and
guidance tools. T. Rowe Price's disciplined, risk-aware investment approach
focuses on diversification, style consistency, and fundamental research.
T. Rowe Price Investment Services, Inc., distributor.
SOURCE T. Rowe Price
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Related links:
http://www.troweprice.com
http://www.troweprice.com/epg
CONTACT:
Brian Lewbart, +1-410-345-2242, or Steve
Norwitz, +1-410-345-2124, or Rajiv Vyas, +1-410-345-6559, all for
T. Rowe Price
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