Good news! The IRS recently threw out its complicated IRA regulations! There are now much more favorable IRA regulations.

Just what does this mean to you? First, you can quit worring about hot to determine your life expectancy for purposes of required distributions. There is now a new uniform table. This table is based on the joint life expectancy of you, and a hypothetical survivor 10 years younger than you (beginning when you turn age 70).

This means that you can now use even longer life expectancies for your IRA distributions. You will want to contact your plan administrator if you are over 70 to recompute your distributions (if you wish to receive your IRA more slowly than heretofore).

The second benefit of the new IRA regulations is in your estate planning. the old IRA rules of "recalculation" or "term certain" are now eliminated. The new IRA rules permit your children to take distributions over their life expectancies.

What should you do to ensure that your children receive this favorable tax treatment following your death? First, make sure that you have structured your benficiaries correctly. For most families, this means that you will want to designate your spouse as your primary beneficiary and your children as contingent beneficiaries. It is important to double check this (including obatining a copy of your beneficary designation for your permanent files).

What about families who own 401Ks? These new favorable IRA rules do not necessarily apply to 401Ks. For many families, this will mean that it would be best to consider rolling theri 401K plan into an IRA.

In summary, IRA's have become the largest single asset owned by many families. Careful planning can have significant financial rewards. You will want to become acquanited with these new IRA rules. Fortunately, the new rules are much simpler than the old rules.

Clay Farrar, is the senior partner with Farrar, Reis, Rowe, Nicolosi & Williams, a third-generation Hot Springs law firm which has specialized in trust and estate planning since 1945. For more information on trust and estate planning, vist the firms web site at www.Farrartrustfirm.com