IRAs as a Legacy Vehicle

In today’s video, we discuss a crucial financial topic: IRAs as a Legacy Vehicle. While IRAs and 401(k)s are excellent tools for accumulating wealth during your working years, they may not be the best option when it comes to passing that wealth to your children.

Here’s what we’ll cover:

Accumulation Benefits of IRAs: IRAs allow you to contribute pre-tax dollars and grow wealth tax-deferred. However, when it comes to inheritance, the rules have changed significantly, especially with the passing of the Secure Act.

The Impact of the Secure Act on Legacy Planning: Before the Secure Act, beneficiaries could stretch IRA distributions over their lifetime, minimizing the tax impact. But now, all IRA funds must be withdrawn within 10 years, leading to a much higher tax burden for your heirs.

Roth IRAs as a Better Legacy Option: We'll explain why converting to a Roth IRA can be a more favorable strategy for legacy planning. Roth IRAs also require liquidation within 10 years, but the key difference is that withdrawals are tax-free, preventing your heirs from being saddled with large tax bills during their peak earning years.

Legacy Planning for High-Net-Worth Individuals: If you’ve built significant wealth in your retirement accounts, this video will help you understand why proper planning is crucial to avoid leaving your children with hefty taxes. We’ll share why we believe that passing on a Roth IRA is a better financial strategy for your legacy.

At AdviceOne, we’re committed to helping you navigate these changes and ensure your legacy is preserved in the most tax-efficient way possible.

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The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.