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Study Finds Most Baby Boomers Don't Understand the Retirement Tax Landscape; Cornerstone Offering IRA Seminars
Tuesday, July 15, 2014 6:40 AM

A majority of middle-income baby boomers and retirees have significant gaps in their understanding of how federal taxes will impact their retirement finances, according to a recent study by the Bankers Life Center for a Secure Retirement. In fact, the survey found that more Americans know how lottery winnings are taxed than how Social Security, IRAs, Roth IRAs and 401(k)s are taxed.

The “Retirement Tax Considerations for Middle-Income Americans” study focused on 1,000 Americans over the age of 50 with an annual household income between $25,000 and $75,000.

Fifty-seven percent of those polled for the study said they didn’t know that they had to begin claiming money from their traditional IRAs and 401(k)s at age 70 ½. Additionally, a majority of them also were unaware that they could withdraw funds from a traditional IRA without penalty to pay for health insurance while unemployed, to pay for college expenses, buy a home or pay for medical expenses, the study found. Only 2 percent of those surveyed were aware of all four exceptions.

To help ensure credit unions are empowered to educate members about IRAs, the Cornerstone Credit Union League is offering an IRA Basics and IRA Advanced seminars Oct. 7-8 in Oklahoma City, Okla. The seminars will be held at the Credit Union House. Well-known trainer Deborah Crawford will present both seminars.    

The IRA Basics seminar is an IRA product overview. If you have just started with IRAs or want a good review of IRA fundamentals, this is the program for you. This program will prepare you to open, move and close IRAs and get all the paperwork right in the process. If you have been afraid of IRAs or just don't have enough basic knowledge this one day review will get you excited and motivated to become the IRA expert at your organization. This day one is fun and beneficial for every person who works with deposits and accountholders. IRA Basics is designed for those with one to three years of IRA experience.

The IRA Advanced seminar focuses on compliance, auditing and reporting. If you have been working with IRAs for years and are ready for the "deeper dive" then this is the IRA program for you. You will receive a quick product review and all the new numbers and changes for 2014 but after that hold on to your hat as we begin to work the complicated issues. Reporting errors and fixes, excess contributions, audits, inherited IRAs are just the tip of the iceberg for those of you who want to know everything there is to know about managing an IRA department. IRA Advanced is designed for those with three or more years of IRA experience.

For more information, including registration, please visit the Education section of Cornerstone’s website. If you have any questions, please contact Training & Events, at (469) 385-6630 or (800) 442-5762, ext. 6630

Educational grants are available through the Cornerstone Credit Union Foundation. To learn more, please visit