Have you ever wondered who you should list as the beneficiary to your IRA? Did you know that different beneficiaries are subject to different tax implications? Listen to Evan Shorten and Elean Mendoza as they discuss the tax implications of the four most common IRA beneficiaries.
Clients often ask their advisors for input as to who should be designated as the beneficiary to their IRA. This is a great question, given the various tax implications that IRA beneficiaries have on a client’s estate plan. In order to understand a beneficiary’s tax implication we must first review the following benefits that IRAs provide.
he Roth IRA is one of the most advantageous retirement savings vehicles. It allows you to make post-tax contributions into a savings account that can be used in retirement without tax liability once certain conditions have been met.
Due to a recent decision by the United States Supreme Court, inherited IRA assets are now fair game for creditors to pursue in bankruptcy court. On June 12, 2014, Clark v. Rameker resulted in a unanimous decision, ruling that funds held within inherited IRAs are not “retirement funds” and therefore do not qualify for exemption under federal bankruptcy laws.