Saturday, December 12, 2015
This column discusses the impact that converting a regular IRA into a Roth IRA would have on estate taxes. Estates that are either at or above the $5.4 million exclusion amount are subject to Federal estate taxes. Dan Moisand points out that the so called “deathbed conversion is unnecessary because of the Income in Respect of a Decedent (IRD) deduction under IRC Section 691(c).” If it is a good idea to convert often depends on whether the owner is in a lower tax bracket than the beneficiary. Another topic discussed in this column is how the recent Bipartisan Budget Act of 2015 has rolled back the file and suspend strategy. The advice in this column are for informational purposes only, people should consult an adviser for more personalized advice.
See Dan Moisand, Do Roth IRA conversions save estate taxes?, Market Watch, December 11, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.