10

Page 10 THE SAUGUS ADVOCATE – FriDAy, MAy 22, 2026 SOUNDS | FROM PAGE 8 Annuities and 1035 Exchanges B eneficiaries of tax deferred annuities have the ability to execute an Internal Revenue Code Section 1035 tax free exchange pursuant to Internal Revenue Service Private Letter Ruling 201330016. This involves a non-IRA annuity. The beneficiary will then have the option of stretching out payments over his or her life expectancy under Internal Revenue Code Section 72(s). The beneficiary also has the option of receiving each monthly payment in a tax efficient manner by utilizing the exclusion ratio contained in certain products offered by insurance companies. Each payment would contain a certain portion that is non-taxable representing a return of the initial investment. Each payment would also contain a certain portion that is taxable representing built-in gain in the tax-deferred annuity. In a typical tax-deferred annuity, if you invested $100,000 and it is now worth $200,000, the first $100,000 of withdrawals would represent taxable income. The earnings are withdrawn first. Once the earnings are exhausted, then the remainder would represent a non-taxable return of the original investment. If you are the beneficiary of a tax-deferred annuity with a substantial amount of built-in gain (i.e. taxable income), you might consider not cashing out the policy as that would result in a significant amount in federal and state income taxes. You might consider executing a tax-free 1035 transfer into a new annuity policy in your name alone. This would allow you to invest as conservative or as aggressive as you wish based ities. The guest speaker will be Kirstie Pecci, Executive Director of Just Zero, a national zero waste, nonprofit organization, who will be presenting on the topic “Massachusetts: Time to Change our Solid Waste System.” The Dinner Buffet will include fresh garden salad, penne with pomodoro, baked haddock, chicken parmigiana, vegetable, rolls and butter, dessert, coffee and tea. Free parking is available on-site, and the facility is ADA accessible. Tickets are $38 per person upon your risk tolerance, risk capacity, priorities, goals and objectives. You can receive payments over a long time horizon resulting in much greater tax efficiency and a better opportunity to provide for retirement income. Upon the death of the annuitant of a tax deferred annuity, a beneficiary must withdraw all of the funds in the annuity by the end of the fifth year following the annuitant’s death. The beneficiary can withdraw all of the monies in year one, take monthly withdrawals over the five year period or wait until year five to withdraw all of the monies. If an annuity is held in a taxable IRA account, a non-spouse beneficiary must withdraw all of the funds by the end of the 10th year following the IRA owner’s death. A spouse can roll the IRA annuity into his or her own IRA and continue with tax deferral until required minimum distributions (RMD’s) are required which is at age 73 for people born prior to January 1, 1960. For those born January 1, 1960, or later, the RMD age is 75. This was provided for in the Secure Act 2.0. So long as you are provided with options, you then can make the decision that is best for you. There are no right or wrong answers. Everyone’s situation is different. Joseph D. Cataldo is an estate planning/elder law attorney, Certified Public Accountant, Certified Financial Planner, AICPA Personal Financial Specialist and holds a masters degree in taxation. payable by check or Venmo (@SAVE-org) as soon as possible, but no later than June 1. Mail checks payable to “SAVE, Saugus” to SAVE Treasurer, Mary Kinsell, 11 Sunnyside Avenue, Saugus, MA 01906. Complete your forms online (https://forms. gle/KEYAU8CUnAWhoxQEA). SAVE was founded in 1973 to promote a better quality of life in Saugus through environmental concern and action. Countdown till Saugus celebrates America’s 250th Here’s a report from Corinne Riley, chair of the Saugus 250th Celebration Committee: “America’s 250th Cele - bration is just seven weeks away! Saugus had our own heroes during the Revolutionary War. There will be speeches by Parson Roby, General George Washington and reenactment of the signing of the Declaration of Independence. There will be entertainment, children’s games played back in the 1700’s, and an old fashioned community get-together and BBQ! It will be at the Saugus Iron Works, Saturday July 4th. Noon to 4 pm. We are looking forward to the 10 precincts entering a patriotic decorated vehicle! Volunteers are always welcome. Join us for a funfilled historical event celebrating our Founding Fathers who created our country’s democratic form of government. If you want more information or have questions, email ccriley@comcast.net. Saugus resident extradited from Dominican Republic after indictment on multiple federal charges (Editor’s Note: The following story is based on a press release from the U.S. Attorney’s Office in Boston.) A Dominican national residing in Saugus was recently indicted and extradited back to the United States from the Dominican Republic to face multiple federal charges stemming from a Homeland Security Task Force investigation for continuing criminal enterprise, drug trafficking and money laundering. Frank Maiky Baez Guerrero, 29, was charged with continuing criminal enterprise, conspiracy to distribute controlled substances, conspiracy to launder money and multiple counts of distribution of fentanyl, methamphetamine and cocaine. According to court documents, Baez Guerrero led a large-scale drug trafficking organization that operated out of Massachusetts, Maine and the Dominican Republic. On Nov. 26, 2024, 10 members of Baez Guerrero’s drug trafficking organization (DTO) were indicted for drug trafficking conspiracy and firearms ofTOWN MEETING | FROM PAGE 3 commitment.” During Monday night’s session, several members expressed the need to update the zoning and general bylaw regulations governing Saugus, pointing to outdated rules or rules that aren’t being enforced. “One of the best examples of why this is needed actually came up just last week during discussion on the hunting bylaw,” Parlante said in making a case for Article 42. “It was acknowledged publicly that a permitting requirement already contained in the bylaw has apparently not really been followed or enforced for years, yet at the same time, Town Meeting still acted to amend that same bylaw by adding an additional restriction,” Parlante said. “I think that actually proves the point of why a bylaw refenses. Allegedly, at Baez Guerrero’s direction these defendants regularly transported fentanyl, cocaine and methamphetamine from Massachusetts to Maine, rented residences to store and sell the drugs to local Maine customers and then returned with the drug proceeds to Massachusetts. The indictment alleges that Baez Guerrero was operating this DTO while in the United States and in the Dominican Republic. The charge of continuing criminal enterprise provides for a sentence of no less than 20 years and up to life in prison, a term of supervised release of up to life and a fine of up to $2 million. The charge of conspiracy to distribute and to possess with the intent to distribute controlled substances provides for a sentence of no less than 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. Multiple charges of distribution and possession with intent to disINDICTMENT | SEE PAGE 12 view committee is needed. Before we continue adding new language onto old bylaws, we should step back and ask: are the existing provisions clear, realistic, enforceable, and actually being administered the way the bylaws say they should be? A review committee gives the Town the opportunity to identify situations exactly like that, where the written bylaws and the real-world practice may no longer match.” Under Article 42, 11 Town Meeting members who express an interest in serving would be selected by a public lottery. Precinct 10 Town Meeting Member Martin Costello wanted to know whether the town has bylaws that are archaic. Town Counsel John Vasapolli said he believes there are many bylaws on the books that are outdated and need to be changed.

11 Publizr Home