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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: seminole who wrote (82971)12/29/2000 8:46:29 AM
From: kollmhn  Read Replies (2) of 95453
 
Richard-
Many of your points are correct. Some could use a little adjustment, though.
It is not hard to get money out of an IRA before age 59 1/2. It is easily accomplished if you are willing to take the longer of 5 years of equal payments or until such time as you do reach 59 1/2. This is w/o penalty.

Secondly, an estate tax problem doesn't come into play until you have a taxable estate. Since the Unified credit is currently $675k, there would be no tax until your estate exceeded that amount. Then the rate starts at 37%.
You could put your IRA into a By-Pass Trust (that utilized the $675k Unified Credit)naming your children as heirs but your wife as the lifetime income beneficiary. Then if you left all your other assets directly to your spouse (free of all estate tax due to Marital Credit) you would avoid any taxes.
Eventually upon her death, her entire estate would become taxable (except $675k of it because she gets the Unified Credit, as well).
IRAs are good vehicles for fixed income investments and other short term gains like those produced by successful traders.
Naked options may not be bought or sold in IRAs. Warrants may.
Foregoing the long term gain rate in an IRA are as onerous as it seems. The additional tax that will eventually be paid (your tax rate upon distribution minus the 20% gains rate) remains in the IRA until its final distribution (which can be many years depending on your choice of beneficiaries and distribution method selection). That deferral compounds all the while.
How an IRA is dealt with is a complex subject. COMPETENT professional advice should be sought.
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