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10-year rule
For years after 2020, with respect to inherited IRA accounts and retirement plans, beneficiaries subject to this rule must empty the entire account by the end of the 10th year following the year of the account owner’s (or eligible designated beneficiary’s) death. • Notice 2022-53 provides relief for beneficiaries subject to the 10-year rule: The IRS will not treat a beneficiary of an inherited account in a plan or IRA who was subject to the 10-year rule and who failed to take an RMD for 2021 and 2022 as having failed to take the correct RMD. Retirement Topics - Beneficiary, irs.gov. • See eligible designated beneficiary.
18B attorney
In New York: An attorney given to a person by the court. County Law § 18b.
50/30/20 budget rule
“[S]pending 50% of our take-home pay on needs, 30% on wants and 20% on debt repayment and savings.” Elizabeth Gravier, Here’s how much money you should be investing in your 401(k), CNBC, July 30, 2023 (Apple News link).
60/40 portfolio
An investing portfolio made up of 60% stock and 40% bonds. • “For many years, a large percentage of financial planners and wealth managers crafted portfolios for their clients that were composed of 60% equities and 40% bonds or other fixed-income offerings. These so-called ‘balanced portfolios’ performed rather well throughout the ’80s and ’90s. The fixed income portion of the portfolio acted as a strong ballast for equities in both bull and bear markets.” Caleb Silver, Ask the Experts: Is the 60/40 Portfolio Dead?, Investopedia (Apple News link).
401(k)
“[A]n employer-provided, defined contribution retirement plan. Employees can contribute either a fixed amount or a percentage of their paychecks to the plan to save for retirement. Some employers may match employee contributions up to a certain percentage.” Olivia Peluso, Investing in a Retirement Plan for the First Time, Investopedia, June 2024 (Apple News link).
2503(c) trust
A trust for a minor where gifts for the minor child qualify for the gift tax annual exclusion if the child has to withdraw all of the trust assets at age 21. • Also called an “irrevocable minor’s trust.”