Large IRAs Are A Ticking Tax
(and you better know how to “defuse” them!)
The good news is that many of your clients (and prospects) have saved substantial taxes by contributing to IRAs (and qualified retirement plans that may rollover to IRAs soon). The better news is that their IRA (or company plan) investments may have grown in size over time and they now have a retirement fund of $250,000, half a million or more.
This bad news is your clients (and prospects) likely have no IRA or retirement plan “exit strategy” at all. And, without it, they’re going to get walloped with income taxes when it comes time to draw them down.
Whether you’re a financial advisor, CPA, life insurance agent or estate planning attorney, you have an opportunity to be a “hero” if you know:
- How the new “5 tier” income tax system may have devastating consequences for large IRAs
- When and how to use Roth conversions (not only with IRAs but with 401(k)s, too)
- Appropriate situations for the use of IRA “relocation” strategies
- “Smart” stretch IRA planning
- Why and how to isolate “basis”
- How testamentary charitable remainder trusts can act as an escape valve
- The possible negative impact of naming a trust as IRA beneficiary (and how to minimize it)