Retire Safe & Tax Free - How Much of Your Nest Egg Would You Like Guaranteed?


Why This Question is so Important, My Friends...

tree grows money

Who will get the money in your IRAs if something happens to you? You may think you know the correct answer but may be surprised to learn that Uncle Sam, in his tax man guise, could take up to 80% of your IRA assets if a Multi-Generational IRA (MGIRA) strategy is not implemented.

The term Multi-Generational IRA (MGIRA) is not an official term, but is used in the retirement planning industry to refer to the ability of your designated beneficiaries to stretch IRA distributions over their individual life expectancies. For instance, assume that an individual inherits an IRA and, based on his age, IRS regulations allows him to stretch distributions over a 30-year period. This means that, providing he withdraws 1/30th of the IRA balance each year, he is allowed to enjoy tax-deferred growth (or TAX-FREE in the case of a Roth IRA!) on the investments comprising the remaining balance in the IRA for approximately 30 years.

Remember, when setting up your tax-deferred retirement accounts, the tax man became your silent partner and you agreed to pay him the taxes sooner or later. Unless your retirement plans are set up correctly, the United States government may be the PRIMARY BENEFICIARY of your IRA... the good news is it doesn't have to be that way!

Many people are focused on accumulation and building up their nest egg yet once retired, they are worried about outliving their retirement funds and having to face the prospect of re-entering the job market during a time they should be enjoying their Golden Years. The first thing you need to understand is that an MGIRA strategy does NOT take any money from you while you still need it. This strategy only affects what happens if you die leaving behind any of your IRA assets or other retirement plan assets to your beneficiaries. This strategy costs you nothing, we can help you with this very simple administrative task.

For your beneficiaries to continue enjoying the benefit of tax-deferred growth on IRA assets they inherit from you, they must be allowed to "stretch" distributions over their individual life expectancies. This option is available only if 1) it is permitted under your IRA custodial agreement or plan document and 2) only if certain steps are taken.

Although custodians are permitted to offer a Multi-Generational distribution strategy, they are not required to offer you this strategy. In this article, we provide a high level overview of the general Multi-Generational IRA "stretch" concept and the steps that must be taken to ensure that it is available for your IRA beneficiaries. It is critical that you discuss your personal situation with your advisor or speak with us because every individual's situation is different.

The term Multi-Generational IRA (MGIRA) is not an official term, but is used in the retirement planning industry to refer to the ability of your designated beneficiaries to stretch IRA distributions over their individual life expectancies. For instance, assume that an individual inherits an IRA and, based on his age, IRS regulations allows him to stretch distributions over a 30-year period. This means that, providing he withdraws 1/30th of the IRA balance each year, he is allowed to enjoy tax-deferred growth (or TAX-FREE in the case of a Roth IRA!) on the investments comprising the remaining balance in the IRA for approximately 30 years.

Without a Multi-Generational distribution plan, your beneficiaries could immediately get hit with a huge tax bill that could needlessly take a large portion away from your heirs. So the question we ask is: "Who do you want getting the majority of the money you worked your whole life to save, your heirs or the federal government?"

Marc H. Weiss, Archer Weiss Insurance & Financial Services, Inc. Please Call Toll free: 1-800-831-2901 or (818) 610-8560