Alpha Planning
and Financial Services, Inc.
and Financial Services, Inc.
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| Distribution Stage: LEAVING YOUR LEGACY |
There are a multitude of problems that people never think of. Here is
just one example:
If you die with money still in an IRA, that money passes on to your children as
ordinary income. It's just as if they earned it. It's also added to whatever they
did earn and then it's all taxed in one lump sum. They could pay in taxes 37%
of what you left them while losing 37% of what they earned that year. On top
of that, add state taxes and, possibly, a death tax.
We've seen a $200,000 IRA pass from father to son with the final proceeds
being less than $40,000 after all the different taxes have been deducted.
Our goal is to help you examine the issues you probably don't even realize
exist and form strategies to avoid pitfalls.
just one example:
If you die with money still in an IRA, that money passes on to your children as
ordinary income. It's just as if they earned it. It's also added to whatever they
did earn and then it's all taxed in one lump sum. They could pay in taxes 37%
of what you left them while losing 37% of what they earned that year. On top
of that, add state taxes and, possibly, a death tax.
We've seen a $200,000 IRA pass from father to son with the final proceeds
being less than $40,000 after all the different taxes have been deducted.
Our goal is to help you examine the issues you probably don't even realize
exist and form strategies to avoid pitfalls.