Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I have the same problem. Looks like I'll be in the 36% bracket when I have to start withdrawals in ten years. What to do about this depends on your intentions regarding your heirs, if any, and the size of your tax-sheltered and other assets. Here's one consideration: If the individual is planning to leave assets to charity, IRA assets would be an ideal choice. IRA assets left to charity will reduce both income and estate taxes. -- IRA Payout and Beneficiary Issues, Deloitte & Touche --
Private foundations and charities can also be beneficiaries of IRA assets. Only the IRA owner's life expectancy may be used for determining distributions. By operation of law, the account balance will be distributed to the charitable organization. The owner's estate will not be subject to estate taxes on the amount contributed to the charity, and income taxes will not be levied on the retirement account balance.

Chips, planning to leave his IRA to charity rather than let his estate pay both income taxes and estate taxes on it, but willing to reconsider the matter if the estate tax is ever repealed
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.