Planning traditional IRA beneficiaries to optimize distributions
This overview explains how beneficiary designations affect tax deferral and payout options for traditional IRAs. It covers primary and contingent beneficiaries, estate implications, revocable trusts, and survivor options for spouses, including deferral, treating the IRA as own, and life expectancy considerations.
Burkot discusses IRA required distributions and life expectancy rules
The article explains that individual non-spouse beneficiaries must follow either the five year rule or life expectancy formulas for inherited traditional IRAs if the owner dies before distributions begin. It notes benefits of using life expectancy to spread taxation, cautions about small yearly distributions, and mentions administrative pitfalls and trust considerations.
MENTIONED IN THIS ARTICLE
Internal Revenue Code
IRA
Plano
Burkot
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Joseph T. Burkot
Law Firm of
Ralph, Nicolls, Mitsos, Flannery & Clark
Philip W. Berezniak
Donald J. Nicolls
Chris J. Mitsos
Richard E. Flannery
Phillip L. Clark, Jr
John W. Flannery
John J. DeCaro, Jr
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