April 28, 2017

Estate Planning: How Inherited IRA Trusts Work

Are you thinking of naming a trust as your IRA beneficiary? You might want to reconsider making this move, unless you’re doing it for the right reasons.

While naming a trust as your IRA beneficiary can add protections and provisions for how your hard-earned money is used, it can also make things more complicated and less tax-efficient. It’s almost always more income tax-friendly to have inherited IRA distributions taxed to your trust beneficiaries rather than to the trust itself.

However, if you’re leaving your IRA to a minor or someone that you fear may not be financially responsible, you may want to have some level of post-death control over your money, so you should weigh your options carefully.

Click here for a chart that outlines how inherited IRA trusts work.

To learn more about estate planning and naming your IRA beneficiaries, contact our office at 703-466-0477 to schedule a meeting.

Securities offered through Triad Advisors, Inc. LLC. Member FINRA/SIPC.

The information provided for informational purposes only, and does not constitute an offer, solicitation, or recommendation to sell or an offer to buy securities, investment products or investment advisory services. All information, views, opinions, and estimates are subject to change or correction without notice. Nothing contained herein constitutes financial, legal, tax, or other advice. These opinions may not fit to your financial status, risk and return preferences.

Securities offered through Triad Advisors, LLC, Member FINRA / SIPC 

Investment advisory services offered through AMJ Financial Wealth Management LLC

AMJ Financial Wealth Management LLC is not affiliated with Triad Advisors, LLC