Retire Safe & Tax Free - Who Inherits Your IRA?


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Who will get the money in your IRA if something happens to you? How can you be sure?

You might be surprised to learn that Uncle Sam, in his tax man guise, could take 35% to 80% of your IRA assets, depending on the state you live in. Unless you make sure your retirement plan is set up correctly, the U.S. government may be the primary beneficiary of your IRA when you die, but it does not have to be that way.

There is a strategy that is designed for those who want to assure themselves that any money left in their IRA at death will get to their heirs and not the tax man. After an IRA owner's death, the deceased's children could continue to receive annual distributions from the IRA based on their individual life expectancies. The beneficiaries will then pay income tax on the distributions as they are received.

The term Multi-Generational IRA (MGIRA) is not an official term, but is used in the retirement plans industry to refer to the ability of beneficiaries to stretch IRA distributions over their Individual life expectancies. 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 the IRA plan document or custodial agreement allows it and specific steps are taken.

Absent an MGIRA, your beneficiaries could get hit with a huge tax bill that could literally drain every penny and leave your heirs with nothing. You need to ask yourself this: who do I want to get all of the money I worked my whole life to save? My heirs or the federal government?

If you have questions, then you should possibly give me a call and I look forward to it! What do you think?

Contact: Marc H. Weiss, Archer Weiss Insurance and Financial Services

(818) 610-8560