No. of Recommendations: 0
Greetings, Bluff, and welcome. You wrote:

<<Each of my two sons will inherit a conduit IRA from their grandmother. The IRA is now worth about $45,000 and consists primarily of a government bond fund (about $40,000) and one stock (Texaco).

As I understand how this works, each will be required to take a minimum annual distribution over a five year period.

Given the 5 year timeframe for this account, I'd appreciate any advice whether it's worth reinvesting in some sort of MI screen, leave as is, or whatever. Would it be better to withdraw the entire account in one lump sum and open a regular investment account for them?>>

I'll leave the investments to you. Just understand that as the money comes out of the IRA, your sons will be taxed at ordinary income tax rates on the amount they receive. Therefore, if you elect to take that money in one year, then in that year they will be taxed on that sum. If that has no impact on their marginal income tax bracket in that year, then there's nothing to really preclude you from taking that approach.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
Live Video Event Monday!
The GP team is hosting a live video event on Monday at 4 p.m. ET. Don't worry if you can't make it — we'll have a replay and a transcript. Click for more!
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.
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.