Can I Use an IRA to Reduce Estate Taxes?
April 3, 2023
There’s a tax-smart way to make bequests by using assets from individual retirement accounts at death.
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There’s a tax-smart way to make bequests by using assets from individual retirement accounts at death.
In early 2022, Bloomberg News reported that Americans can expect to inherit $72.6 trillion over the next quarter century—more than twice as much as a decade ago. With so much potential generational wealth on the line, there is always a risk that it will become the subject of a dispute.
Overlooking an important step or making a blunder can derail all your careful planning, leaving your heirs and beneficiaries with a headache-inducing challenge.
Understanding the different treatment of gifts by the IRS, Medicaid and VA systems can ensure that property passes as expected.
If you anticipate inheriting a 401(k) from a parent, a spouse or someone else, it’s important to know your options for minimizing tax liability.
No one enters a relationship — be it personal or business — thinking it will fail. However, what happens when it does?
Succession and estate planning is difficult and time-consuming. However, it is also a key step for a business that can grow into the future.
Avoidance of estate taxes is one consideration in estate planning, but the estate tax system only applies to the wealthy. The income tax, however, applies to EVERYONE, and improper income tax planning often creates unnecessarily large income tax liabilities for the heirs of middle income Americans.
Portability allows the predeceasing spouse’s unused estate tax exemption to be used at a later time for the estate of the surviving spouse. But for better estate tax planning results, large estates shouldn’t solely rely on portability to reduce their esate taxes.
A Roth conversion involves liquidating assets in a tax-advantaged account like a traditional IRA or 401(k), paying taxes on the withdrawal, and then funding a Roth IRA. In the short run, investors will pay taxes (more on that below).
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