Philip J. Kavesh
Nationally recognized attorney helping clients with customized estate planning guidance for over 40 years.

Minimum disbursements can be a problem but not necessarily, if you have an inherited Roth IRA.

Because a Roth IRA is subject to the current income tax when contributions are made, the money is not taxed later when it is taken out of the account. This can make inheriting a Roth IRA quite beneficial, according to Market Watch in “Want to make that inherited IRA last longer? Here’s how.”

If the beneficiary of the inherited Roth IRA takes out a required minimum distribution by December 31 of the account creator’s death, then the account can be stretched out over time. As long as a required minimum distribution continues to be taken, the account can grow and continue to be tax free.

On the other hand, if money is not taken out by that initial December 31 deadline, then all funds must be taken out within five years of inheriting it.

When you make your decisions about what type of IRA to get, you might want to consider how it will affect your heirs.

An estate planning attorney can advise you on creating an estate plan that fits you unique circumstances, which may include a Roth IRA.

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If you need to speak with an experienced estate planning lawyer please contact us online or call us directly at 800.756.5596 to claim your space at one of our free, informative seminars. Your attendance will qualify you for a discount for our estate planning services. We proudly serve clients throughout California with offices in Torrance, Newport Beach, Orange, Woodland Hills and Pasadena.

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