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It is simple,but not easy. Buy no or low dividend stocks in a taxable

account to pass on to your children,cost basis steps up no cap gains.

Have kids do the same,presto intergenerational wealth.


Thanks for addressing my question, Jim, and staying on topic. Our assets are already set in a mix of Roth and TIRAs, and we have already decided to max out the conversion to Roth while we wait to take SS, at least up to the 15% bracket and possibly even higher. That way even if the kids wind up having to clear the Roths in 5 years, the taxes will have been taken care of. We are not talking a huge amount of money from an inheritance POV, but enough to really kill you tax wise if you can't control when you get taxed on it.

But our kids both already have Roth accounts, and will no doubt have 401Ks. I'm thinking there is a certain tax level at which these are a good idea still, particularly with match from employer for 401K. Since they had Roths available to them from the start, unlike us, they should not wind up in the same position as we are with most of our funds in TIRAs, and it should be easier for them to convert their 401Ks to Roths when they change jobs, or indeed hopefully have a Roth IRA.

But what is the magic tax level? Is there a calculator out there that will give you a clue if you should be putting your funds in a Roth, taking the tax break for the TIRA or leaving it in taxable funds?

IP
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