Estate Planning News: October 2014
Plan. Preserve. Protect.
A Quarterly Compilation of Important Estate Planning News
In This Issue
The Achieving a Better Life Experience (ABLE) Act
Will the President and Congress Change the Estate Planning Benefits of Roth IRA's?
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R & R
A "Just For Fun" Column
For each quarterly newsletter, a member of our staff will share a recent trip, experience, restaurant, movie, etc., that provided them with some much needed Rest and Relaxation. We hope that this column gives you something enjoyable to read in addition to our extremely important, yet sometimes not always "fun", Estate Planning News. 

The Ohio State University Marching Band (TBDBITL)  


My husband, Doug, and I are both graduates of The Ohio State University and avid OSU football fans.  Once football season hits, we rarely miss a game and since our son Anthony has been in TBDBITL - The Best Damn Band in the Land - we added going to the Skull Session as part of our game day ritual.  The Skull Session is a pep rally held at St. John Arena before home games.  In a nutshell, no pun intended, the band marches in to a packed arena.  They play the fight song while the football team walks in and then Coach Meyer and a senior player speak and get the crowd psyched up before the team leaves to prepare for the game. 




What follows is the band's performance of the entire half-time show and it is always amazing and incredibly entertaining.  Our ritual for the past two years has been to arrive insanely early to the Skull Session to ensure we get a front row seat, or nearly a front row seat.  A highlight for us, not surprisingly, is that we get to visit Anthony and his band friends after their performance and hear all about the half-time show before they march to the stadium. 


Anthony's band nickname is Kitty and I like to wear my "Kitty's Mom" shirt to the games.  His name was given to him because he always said cat puns, one of which was Kitty Purry, a cat pun for Katy Perry, and the nickname Kitty stuck.


We aren't the only ones at Resch and Root who are connected to the band.  Bill Root was a member of TBDBITL, as was his father and some of our clients.  When clients come to the office it doesn't take long to notice the OSU memorabilia and strike up a conversation about the band or the team.  It is fun to hear what rituals they have for game day and some are pretty crazy.  I guess I'm not the only nut out there rooting for the Bucks!


R&R by: Linda M. DiCocco

  Dear Friend of Resch and Root,

Welcome to our quarterly eNewsletter. 

Fall has arrived in Central Ohio and along with it the start of football season. Not only are we fans of The Ohio State University football team, but we also root equally as hard for OSU's Marching Band. In this issue's R&R Column we will learn a little bit more about what game day means for the marching band and their fans.

We will also take a look at two estate planning topics that have recently hit the national newsrooms: The Achieving a Better Life Experience (ABLE) Act and possible changes in the estate planning benefits of Roth IRA's.
As always, feel free to share with us any ideas you may have on upcoming eNewsletter issues or questions regarding topics that were discussed.
F. David Resch  
William K. Root
The Achieving a Better Life Experience (ABLE) Act  


We keep up to date on legislative changes that may impact the lives of people with disabilities and their families. 


The Achieving a Better Life Experience (ABLE) Act is currently awaiting approval by Congress.  This change in the law would allow third parties, (loved ones, families, etc.) to fund an account to pay for quality of life for a person with disabilities.  Similar to College 529 plans, these plans would allow money to be saved and spent on qualified expenses without affecting eligibility for government programs.  The details of this legislation are pending but in all likelihood will include a cap as to the amount that could be saved without affecting benefits.  All reports state that this legislation has bipartisan support. 


The one drawback, from our point of view, is that the legislation in its current form includes a Medicaid payback provision.  Because of this payback provision, this ABLE account is likely to be just one piece of the planning solution that families may implement along with a Non-payback Special Needs Trust and other estate planning documents.  


Will the President and Congress Change the Estate Planning
Benefits of Roth IRA's?


As the Federal Government is looking for more sources of tax revenues, the President and Congress are looking to the billions of dollars Americans have placed in IRA's and 401(K) plans to help feed their insatiable appetite for money.  By tapping tax-advantaged retirement savings accounts, the government can bring in more tax revenues without actually raising taxes.


The President included a number of proposals in his 2015 budget that could have an impact on the retirement planning of ordinary Americans as opposed to people with millions in their 401(k) plans.  The President's proposal would institute required minimum distributions, or RMDs, from Roth IRAs once savers turn 70 1/2 -- similar to the distributions that people must make from traditional IRAs and other retirement accounts.  Currently there is no RMD for Roth IRA accounts.  The proposal would also eliminate RMDs for people with $100,000 or less in their IRAs.


Traditional IRA account owners have to pay income taxes at ordinary income tax rates on the money they withdraw from their IRA and retirement accounts.   Owners of Roth IRAs have already been taxed, so taking an RMD could mean moving Roth savings from a tax-free account to an account where earnings would generate taxable income.  For many Americans in Roth accounts, this change won't have much impact. If you have to take money out of your savings and spend it, you wouldn't pay any extra income taxes. Even if you put your RMD in some sort of cash account such as a money market fund, you're unlikely to generate enough income to affect your tax bill very much.


The people who would feel such a change the most are the ones who don't need to spend the money in their Roth IRAs and hope to leave the account to their heirs. Under current law, heirs are able in many circumstances to let the inherited account continue to grow tax-free over their life expectancy.  We are monitoring tax proposals as they are being introduced into tax and budget legislation that could have an impact on your estate plans.


These proposed rule changes would make Roth IRAs a much less attractive savings vehicle for people who have substantial retirement savings and want to leave a tax-free inheritance to their children.


Upcoming Events

Below are some events we will be participating in, please stop by and see us if you will be in attendance as well:


October 12: Walk Now for Autism Speaks at Huntington Park

October 15: Transition Night Resource Fair at Westerville South High School 

October 21: Estate Planning from A-Z Continuing Education Seminar, please visit to register.


November 4: The Dirty Dozen Life & Estate Planning Mistakes to Avoid Presentation at the Worthington Community Center. To register for this free event, please call 614-436-2743 & reference program 26360



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 About Resch and Root, LLC

With over seventy years of combined experience, we have learned to listen. 
We are attorneys and counselors at law specializing in estate planning and tax minimization.


Upon learning and understanding your needs, we craft solutions that accomplish your family's personal and financial planning goals. With our insights, knowledge and understanding, our experienced attorneys and staff will guide you through what for many can be a sensitive process. Our comfortable environment allows you to feel at ease while discussing these important decisions. Invite us to take care of your family while preserving your legacy. At Resch and Root, we are committed to providing you with the best gift of all. Peace of mind.