Mark A. Trewitt, CLU, ChFC, AEP, CFP®'s Answers and Guides

D -

The proper method would be to have communicate with ING and MMLI the error, and request of ING that they reverse the rollover to the extent of the error ($1,700+). After ING reverses the transfer in this amount, then MMLI would disburse to you the excess amount.

It involves a bit of effort on your part, or on the part of your financial advisor, presuming that you may be working with one. Regardless, it is best that it be corrected now to avoid complications down the road.

Best Regards,

Mark A. Trewitt, CLU, ChFC, AEP, CFP

Plans fail for lack of counsel, but with many advisers they succeed. Proverbs 15:22, NASB

While each situation is different, most of our firms clients are retired and have sufficient assets to last them the rest of their lives - not a situation where life insurance would normally be considered as "needed". However, there is a niche but significant opportunity here, and it applies to couples of all ages - regardless of other financial assets, whether they have children or not, or whether any traditional "need" exists.

The use of a Guaranteed Death Benefit, Level Premium Universal Life Insurance policy on each spouse in an amount between 10% to 25% of current net worth (higher if IRA assets comprise a higher percentage of net worth) is in order. Use a policy which has an accelerated benefit for Long Term Care events, and the "expense" of Long Term Care insurance is replaced with a known, identifiable rate of return at normal life expectancy. In this regard, the Death Benefit may be viewed as an additional "asset class" in the context of the financial portfolio that remains for a surviving spouse or legacy for children. The fact that the life insurance death benefit is income tax free makes it an even more attractive asset class. In larger estate situations, the insurance may be removed from the estate through the use of an Irrevocable Life Insurance Trust.

The additional reason for insurance on both spouses is that when the first death occurs, the surviving spouse may use the life insurance procceeds to effect a Roth Conversion of part or all IRA assets - with the tax bill being paid with discounted proceeds from the life insurance death benefit.

Yes, it is what is known as a 72(t) distribution - The Internal Revenue Code section 72(t) and 72(q) can allow for penalty free early withdrawals from retirement accounts under certain circumstances. These sections can allow you to begin receiving money from your retirement accounts before you turn age 59-1/2 generally without the normal 10% premature distribution penalty. Use this calculator to determine your allowable 72(t)/(q) Distribution and how it maybe able to help fund your early retirement. http://www.dinkytown.net/java/Retire72T.html

Patricia, an excellent resource for this need, as well as many other financial calculators, may be found at http://www.dinkytown.net/java/NetWorth.html. While you cn enter information and print the resulting report, it does not allow you to save your data.