Coping With The IRA RaidCoping With The IRA Raid
Inheritors of individual retirement accounts (IRAs) who don't enjoy the tax-favored status of a surviving spouse can face steep income and estate tax bills. Many estate planners are aware of the tax raid that can fell large IRAs. It has become a tax planning article of faith that IRAs, especially large ones, are not worth much to those who inherit them. Life insurance is often proposed to fight the
Michael J. Jones, Thompson Jones LLP, Monterey, Calif.
Inheritors of individual retirement accounts (IRAs) who don't enjoy the tax-favored status of a surviving spouse can face steep income and estate tax bills. Many estate planners are aware of the tax raid that can fell large IRAs. It has become a tax planning article of faith that IRAs, especially large ones, are not worth much to those who inherit them.
Life insurance is often proposed to fight the effects of the IRA tax raid problem. And it can be highly effective in that role. But this is no silver bullet. Estate planners and their clients also should consider how valuable stretching out IRAs can be.
It's not difficult for insurance specialists to illustrate that a voluntary lifetime ...
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