Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, April 17, 1995 TAG: 9504170007
SECTION: MONEY PAGE: A-8 EDITION: METRO
SOURCE: MAG POFF
DATELINE: LENGTH: Medium
My understanding is that this can be done by rollover after distribution for the year of the rollover has been made.
A: Michele Grant, vice president for retirement services at First Union Corp. in Charlotte, N.C., said your options depend on the way you set up the plan four years ago at the time you started withdrawals.
If your son was your beneficiary at the time, she said, you have the option now of using a joint life expectancy. This would reduce the amount of the required minimum withdrawal and thus result in a longer payout period.
This is permitted, she explained, because you were in effect simply withdrawing more money than legally required. The government allows larger withdrawals but insists on a minimum amount.
But if you had no named beneficiary at the time, or if you had another beneficiary (such as your wife), then you cannot extend the payout period now, Grant said.
If your beneficiary changed after your required beginning date and your new beneficiary is younger than the previous beneficiary, she said, you must continue to use the original beneficiary for purposes of determining your required distribution amount.
Who takes on the debts?
Q: Would you please let me know who is responsible for the mother's debts, such as credit card bills, in the event of her death. The only income she has is Social Security. She has been living with my brother for years, and he claims her on his income taxes as a dependent.
A: Her creditors would have a claim against your mother's estate, including any life insurance, but they would not have a claim against you or your brother. An exception would be if one of you signed for her credit card, medical bills or the like.
Absent such voluntary assumption of her debts, no adult would be responsible for the ordinary debts of any other adult. This especially is true of the credit card, which is based on a contract between your mother and the bank issuing the card.
Deal with those you know
Q: In 1968, I bought 16 shares in the Sun Tide Corp. through a broker in New York City. The Sun Tide Corp. was located in Utah.
For years, I got annual shareholders' letters, but the last one was dated March 1, 1972. I have not had any since. I would like to know what happened to the company and if the stock is worth anything.
A: You should be careful about investing through an out-of-town brokerage house, especially if the broker gives you a "cold call" to solicit your business. Local businesses must live on their local reputation, but out-of-town houses rarely are under such compunction. Therefore, good advice is to deal with people you know or people you can reach.
Peter Milward, manager of the Roanoke office of J.C. Bradford & Co., said Sun Tide Corp. merged in April 1972 with Maxa Corp. Maxa is the surviving company.
Shareholders of Sun Tide received one share of Maxa for each five shares of Sun Tide, so you own three shares in Maxa Corp. You should have been notified of this exchange, perhaps in the March 1972 letter.
Maxa is a so-called penny stock that hardly ever trades. Milward said its last listed value was $1.60 a share, so your three shares might be worth about $4.80. But a call by J.C. Bradford to the Over the Counter desk in New York elicited the information that the stock of Maxa is no longer trading. In other words, there is no current market for the stock. You might see your broker to determine if there is anyone who makes a market in this stock, then get rid of it if you can.
by CNB