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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: RMDs off Estate IRA Date: 2/6/2014 3:55 PM
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Apologies to the board for posting on top of myself, but more for the OP:


"Naming your estate

This is the biggest blunder of all.

Those who name their estate as their IRA beneficiary, or who inadvertently do so by failing to select a beneficiary, deprive their heirs of a significant growth opportunity.

Normally, nonspouse beneficiaries who inherit a traditional IRA can choose between two options: Either liquidate and pay taxes on those assets within five years of the owner's death, or "stretch" their required minimum distributions out over their lifetime.

"Too many people do not understand the significance of a beneficiary form and leave them blank or name their estate," says Brown. "This is a complete mistake because it limits the beneficiaries' ability to stretch the IRA after the owner's death. It speeds up the income taxes on the distributions as well and can amount to hundreds of thousands of lost growth potential." "

http://www.bankrate.com/finance/retirement/ira-beneficiary-f...

Regards, JAFO
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