Distribution Planning for Retirement Accounts and IRAs
Many individuals
generate large
retirement assets
through
contributions and
appreciation. In
most cases, an
individual is
required to withdraw
minimum
distributions based
on IRS tables
beginning at age 70
½ . Because these
minimum
distributions are
relatively small,
significant
retirement assets
may be left at
death. With proper
planning, these
assets can be left
to children and
grandchildren who
will also be able to
withdraw minimum
distributions based
on their own life
expectancy. If a
grandchild is
selected as
beneficiary, the
income tax deferral
can be for 70 years
or more (the life
expectancy of the
grandchild) allowing
for decades of tax
deferred growth.
Trusts can be
created to be
beneficiary to keep
control with a
responsible person.
