Compass
|
Bates & Company, Inc.
|
AimPoint Pension
|
Regional Vice President of Sales The Retirement Plan Company
|
Loan & Distribution Specialist AimPoint Pension
|
Defined Benefit Combo Cash Balance Compliance Consultant Loren D. Stark Company (LDSCO)
|
“BenefitsLink continues to be the most valuable resource we have at the firm.”
-- An attorney subscriber
Deathbed Roth Conversions and the IRD Deduction
Michael Kitces in Nerd's Eye View July 15, 2015
"[W]hile the [income in respect of a decedent (IRD)] deduction does shelter against Federal estate taxes, deathbed Roth conversions can still be relevant to protect against state estate taxes. Though in either case, the greatest driver of the outcome is not actually the IRD deduction or minimizing state estate taxes at all, but trying to shift the timing of when the IRA is recognized for tax purposes, so that the income taxes are paid at whichever rate is lower -- either the IRA owner now, or the rate the beneficiaries would pay by simply inheriting the pre-tax IRA and stretching it out in the future!"
|
Please click here to report this link if it is broken (for example, if you see a "404 File Not Found" error message after you click on the linked news item's title). |
An important word about authorship: BenefitsLink® created this link to the news item, but we are not the news item's author (unless expressly shown above). |