Friday, September 29, 2017
It can be difficult to resist the temptation to cash out an inherited Roth IRA, but stalwartness in the face of becoming flush with cash can be beneficial. Taking advantage of current provisions and “stretching” the account may decrease tax liabilities and improve overall fund usefulness. Inherited Roth IRAs have different tax implications for beneficiaries relative to the original owners in that the distributions are tax-free. If a beneficiary does not immediately need money, he or she can take the required minimum distributions and leave the remaining assets in the account to continue growing. Over time, the result is a larger pool of tax-free funds that can be saved and used later.
See Dan Moisand, Want to make that inherited Roth IRA last longer? Here’s how, MarketWatch, September 22, 2017.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.