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Straight income tax is what you will pay if you cash-out your IRA now.

My CPA has advised me to "Spend down" my IRA rather than for my beneficiaries to face paying income taxes, and estate taxes on their shares of the IRA. Some ridiculous scenarios are 27% income tax and then 55% estate taxes on top of that for a total of 82%.

I have read that only the estate tax will apply, but when I asked my CPA about that he said that would only apply if the IRA beneficiary was The estate". It would not apply if the beneficiaries were real people.

Hopefully, in the next administration, our Congress will eliminate the dreaded estate tax. I certainly hope so for all of our sakes.

Good luck,
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