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Financial Planning / Tax Strategies


Subject:  Re: Estate Funds Date:  12/30/2013  7:33 PM
Author:  Raladic Number:  119776 of 127613

This is to the best of my knowledge:

Roth IRA: Tax free withdrawal of the $25000 within 5 years or via a spanned RMD over their lifetime, as your kids are not your spouse (so they can't take over the account the same way your spouse could)

Traditional IRA: $25000 as new cost basis, withdrawal rules like above for Roth, but since it's a tax deferred account, they still pay tax at withdrawal on all distributions

Taxable Account: $25000 is their new cost basis, tax will be due on gains from the new cost basis
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