Haddad Nadworny Fri, Sep 18, 2020 @ 07:00 AM 6 min read

Preview: Planning Strategies for Grandparents Webinar 🎧

The Special Needs Financial Planning Team at Affinia Financial Group John Nadworny, CFP, CTFA | Cynthia Haddad, CFP, ChSNC | Alexandria Nadworny,  CFP, CTFA

Fall is here 🍁and families and communities are beginning the school year.  Whether the option is a phased return to the classroom, fully remote learning or a combination, there is little doubt that life this fall will require significant adjustments for both parents and students. Many families may require a tutor or aide to meet their child’s learning needs and the family’s childcare requirements.

 SNFP - Flyer - Webinar for Grandparents DigitalAs markets hover near all-time highs, and for many, family support needs have risen, it may make sense for grandparents to consider using a portion of their retirement funds to gift or plan to gift to family members. In our upcoming September 23 webinar, 2020 Year-end Strategies for Grandparents of People with Disabilities, we will discuss several options for grandparents and parents to think about and consider.

 Here’s a preview:

A relatively straight-forward strategy: The CARES Act eliminated the Required Minimum Distribution (RMD) from retirement accounts for 2020. Retirement account holders may elect to take their 2020 distribution and use it to gift or to pay for educational or therapeutic expenses for their grandchildren. While there will be taxes due on the distribution, the gifts, if under the $15,000, are tax exempt and there may be an additional exemption for direct payment for approved expenses.  Alternatively, it may be wise to remove these funds from the retirement account(s) this year and, as part of your estate plan, gift directly to an established pass-through Special Needs Trust (SNT).

A more complex strategy we will outline and discuss: The SECURE Act eliminated the “stretch” IRA distribution option for non-exception beneficiaries. Now all assets are required be distributed to beneficiaries by the end of 10 years, however annual RMD withdrawals are no longer required. 

The financial impact of deferring distributions is more substantial than one might think.  

Individuals with disabilities may qualify as an exception beneficiaries; we will discuss this option and you can read more about it in our blog, When a Special Needs Trust is the Beneficiary of A Retirement Account.

In addition we will also discuss a Roth IRA conversion as a strategy to consider; you can read more about it here.

Please join us Wednesday, September 23 @4PM to learn more about the strategies mentioned here and other timely planning tips and strategies.


The information provided here is for general information only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

 All investing involves risk including loss of principal. No strategy assures success or protects against loss.

Past performance is no guarantee of future results.