IRA (Independent Retirement Account) Plans to Reduce IRA Taxes
June 2, 2010 by admin
Filed under Retirement Communities
How the Stretch IRA in Estate Taxes, 401k Plans, and Inherited IRA Affect You
Best IRA Rescue briefly describes the significant taxes that can be imposed upon a highly appreciated IRA coupled with associated estate taxes compounding the problem of inherited IRA taxes. Best IRA Rescue provides IRA retirement solutions and strategic plans for your IRA assets including real estate assets and stock portfolio in order for you to control how your sizeable IRA money will flow to your children and heirs. We believe implementing a good, solid, strategic IRA retirement plan is the best way to control your IRA assets. Call us and learn how we can assist you with the BEST IRA RESCUE plan today!
Life is a matter of probabilities. Every time you get into a car, plane, bus, or train, there’s a small, but measurable chance that you will have an accident. It doesn’t take an Einstein to understand the high probability that if you are over the age of 60, and you have an estate tax problem, and you die with an IRA, 77% of your money will go to the government and only 23% will go to your heirs. An IRA disaster is totally avoidable.
IRA-Invidual Retirement Account from 401K Plan, Profit Sharing Plan or Defined Benefit Plan
An Individual Retirement Account (IRA) is nothing more than a non-forfeitable Trust. Contributions are legally limited, however there are no limitations on conversion from a 401K or other pension plan to an IRA. If you were an executive of corporate America, upon retirement you most likely converted your 401K plan, or your Profit sharing Plan, or your Defined Benefit Plan to an IRA. If you have a highly appreciated IRA and you have an estate tax problem, here’s what happens if you die with a $3million dollar IRA. If you have an estate tax problem and you die without the Best IRA Rescue plan and you have a three million dollar IRA, the Federal and State taxes will be up to seventy-five percent of your inheritance or $2,251,800 in total taxes. In other words, your heirs will inherit as little as twenty-five percent or $748,200.
Stretch IRA Problems
Most advisors cure this problem with Stretch IRA. Stretching the IRA distributions over a longer life other than the owner, usually someone younger, i.e. grandchild.
Stretch IRAs are a good idea for someone who does NOT have an estate tax problem. Stretch IRAs are a BAD IDEA for those who have an estate tax liability.
Why does the stretch IRA not work? Because when the stretch IRA passes to a younger heir estate taxes are due. If the younger heir receives a $3 million dollar IRA there would be a $1,500,000 estate tax due. Where is the young heir going to get $1,500,000 to pay the IRS?
The presumption is that the heir will take the $1,500,000 out of the IRA. When the heir takes out $1,500,000 from the stretch IRA it’s taxable income and income taxes are due on that money. This creates a vicious cycle that can be avoided with our IRA Rescue strategy.
Best IRA Rescue.com has a better way to avoid the IRA 77% estate and inherited tax problems.
Disclosure: The exact calculation of income taxes due are complex, and are dependent on your income tax bracket, the composition of your income, and your applicable state taxes where your assets are domiciled. If you have estate tax problems, and you have a $3 million IRA, you can nearly guarantee double taxation on your death. Call Best IRA Rescue.com for a personal in-depth analysis of your personal or family’s IRA situation.
This statement is required by IRS regulations (31 CFR Part 10, §10.35): Circular 230 disclaimer: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
Best IRA Rescue briefly describes the significant taxes that can be imposed upon a highly appreciated IRA coupled with associated estate taxes compounding the problem of inherited IRA taxes. Best IRA Rescue provides IRA retirement solutions and strategic plans for your IRA assets including real estate assets and stock portfolio in order for you to control how your sizeable IRA money will flow to your children and heirs. We believe implementing a good, solid, strategic IRA retirement plan is the best way to control your IRA assets. Call us and learn how we can assist you with the BEST IRA RESCUE plan today!
Life is a matter of probabilities. Every time you get into a car, plane, bus, or train, there’s a small, but measurable chance that you will have an accident. It doesn’t take an Einstein to understand the high probability that if you are over the age of 60, and you have an estate tax problem, and you die with an IRA, 77% of your money will go to the government and only 23% will go to your heirs. An IRA disaster is totally avoidable.
IRA-INVIDUAL RETIREMENT ACCOUNT FROM 401K PLAN, PROFIT SHARING PLAN OR DEFINED BENEFIT PLAN
An Individual Retirement Account (IRA) is nothing more than a non-forfeitable Trust. Contributions are legally limited, however there are no limitations on conversion from a 401K or other pension plan to an IRA. If you were an executive of corporate America, upon retirement you most likely converted your 401K plan, or your Profit sharing Plan, or your Defined Benefit Plan to an IRA. If you have a highly appreciated IRA and you have an estate tax problem, here’s what happens if you die with a $3million dollar IRA.
STRETCH IRA PROBLEMS
Most advisors cure this problem with Stretch IRA. Stretching the IRA distributions over a longer life other than the owner, usually someone younger, i.e. Grandchild.
Stretch IRAs are a good idea for someone who does NOT have an estate tax problem. Stretch IRAs are a BAD IDEA for those who have an estate tax liability.
Why does the stretch IRA not work? Because when the stretch IRA passes to a younger heir estate taxes are due. If the younger heir receives a $3 million dollar IRA there would be a $1,500,000 estate tax due. Where is the young heir going to get $1,500,000 to pay the IRS?
The presumption is that the heir will take the $1,500,000 out of the IRA. When the heir takes out $1,500,000 from the stretch IRA it’s taxable income and income taxes are due on that money. This creates a vicious cycle that can be avoided with our IRA Rescue strategy.
Best IRA Rescue.com has a better way to avoid the IRA 77% estate and inherited tax problems.
Disclosure: The exact calculation of income taxes due are complex, and are dependent on your income tax bracket, the composition of your income, and your applicable state taxes where your assets are domiciled. If you have estate tax problems, and you have a $3 million IRA, you can nearly guarantee double taxation on your death. Call Best IRA Rescue.com for a personal in-depth analysis of your personal or family’s IRA situation.
This statement is required by IRS regulations (31 CFR Part 10, §10.35): Circular 230 disclaimer: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. Federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
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