Last week we brought you part one of IRA guru Ed Slott’s thoughts on IRA rollovers, taxes and the educated advisor. But as you begin talking with clients and fielding their tax questions, there’s something else to keep in mind: the most common IRA mistake.
According to Slott, this is one mistake that’s made far too often and, quite frankly, should never be an issue. Read on to find out Slott’s thoughts on the most common IRA mistake, becoming an IRA expert and one more tidbit on being educated about IRA rollovers.
SMA: What are the most common IRA mistakes advisors need to avoid?
Slott: Not checking beneficiary forms. Oh, they think, that’s somebody else’s job. But it shouldn’t be. As the advisor you need to be on top of those life changes of your clients — life, birth, death, marriage, etc. All of those have to be changed. People don’t understand that the beneficiary forms can trump the will. You can imagine the problems that occur if, say, an ex-spouse is the beneficiary, and you don’t find that out until the death of a loved one.
SMA: I’ve heard you make doctor analogy when referring to IRA experts.