Personal Investments • sequence of withdrawals during retirement--differing philosophies

I've heard it said that the worst thing to inherit is a traditional IRA. True?

I read a line somewhere recently that "people who leave a tax-deferred account like a Traditional IRA or 401k to their beneficiaries should only do so as a prank."

It depends.

For example, if the decedent would have had to pay 45% (federal + state) to do a Roth conversion, but the heirs would pay only 24% to withdraw from a traditional account, the heirs would be better off inheriting the traditional IRA.

Of course, counterexamples exist so...it depends....

Statistics: Posted by FiveK — Fri Jun 21, 2024 11:41 pm — Replies 14 — Views 891

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