Pass Your IRA Investments to Heirs Tax Free
At age 70, the IRS forces you to make mandatory withdrawals from your IRA, 401(k) contributions or 403(b). This required minimum distribution (RMD) reduces your investment and the amount you leave to your heirs. PLUS this makes your loved ones pay a high percentage of taxes on their inheritance.
Beat the IRS and grow your legacy.
Let GreenStar Advisors help you turn this required minimum distribution into a boon for your heirs. If you don’t need the money from the RMD, we have a number of ways to transform your IRA or 401(k) contributions into a large tax-free inheritance. Here’s just one example of how we can do this:
1. Define the situation.
A client turning 70 had a $500,000 IRA and one child as a beneficiary. First, we determined that she did not need the money from the required minimum distribution.
2. Calculate the potential tax burden.
If she were to pass away, and the IRA was cashed out, the entire $500,000 would end up on the daughter’s tax return as ordinary income. Already in the 25% tax bracket, this distribution would push the daughter into the top 35% tax bracket, costing her $150,000 in taxes. The daughter would end up with only 70% of her inheritance.
3. Reinvest the money.
Instead, we put the $500,000 into an annuity paying out the $500,000 over a five-year period. The policy had a death benefit, payable to the daughter 100% tax free.
If the client were to pass away within the five years, the life insurance company would stop collecting premiums and her daughter would get the remaining payments from the annuity along with the death benefit.
The client and her heir wins.
Request a Personal Quote now.
Let me help you increase the money you leave behind and protect it from taxes. It’s easy. Just call or email me now and request a brief four-question form we can use to see if this option would work for you.
In as little as 48 hours you can learn how you can invest your RMD withdrawal and pass the money to your heirs tax free.
Call or email Green Start Advisors now: