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Originally Posted by Indy-Guy
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The article contains very good information about withdrawal requirements on IRA's upon death and options for beneficiaries.
The basis contention of the article is why cause the beneficiaries a tax burden when they withdraw the funds? Some will require a full withdrawal in no more than ten years. Maybe the owner should close out the IRA while they are living and save the beneficiary the tax burden. And that's a good thought but it comes down to tax brackets. What will be the bracket in the year(s) of withdrawal to the owner compared to the tax brackets of the beneficiaries? How does one know what the brackets will be to all of the beneficiaries in ten years? What will be bracket be to the owner if they distribute the entire balance? How old are the beneficiaries and will the IRA distribution have an effect on other areas - medicare, social security costs, food stamps?
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Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passions, they cannot alter the state of facts and evidence. John Adams
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