Can an IRA Be Used for Estate Planning Purposes?

Many people contribute into individual retirement accounts or IRAs, and the primary purpose for most people is the development of a retirement nest egg. An IRA can indeed be an essential part of your retirement plan, but under some circumstances, an IRA could be used for estate planning purposes. Let s look at the details. Roth Individual Retirement Accounts One type of individual retirement account is the Roth IRA. With this type of account, you make contributions after you pay taxes on the income. As a result, if and when you take distributions, they are not subject to taxation. You can begin to take penalty-free withdrawals when you are as young as 59.5 years of age. You are not required to take mandatory minimum withdrawals at any time when you have a Roth IRA. As a result, if you are in a financial position to do so, you could allow the account to grow tax-free throughout your life, and you could bequeath the account to a beneficiary. If the beneficiary is someone other than your
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