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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: w0z who wrote (24378)	3/1/2000 8:18:00 AM
From: ScotMcI	Read Replies (2) \| Respond to of 25960

OT I went thru this with my father's estate. First we paid the 55% estate taxes on the IRA value (the IRA gets lumped in with all the other assets for purposes of the estate tax), then the IRA payments to his beneficiaries (in our case, the heirs had to begin taking distributions immediately because he had already started taking distributions himself) are taxed as ordinary income, which here in California amounts to a combined 48% or so if you're in the upper-most bracket. That leaves about 23.4% (45% remaining after estate tax, times 52% after income tax). True, there's some tax-deferred accumulation if the distributions are spread out over a long period, but it's still quite a hit. With a Roth, your heirs keep almost twice as much as a conventional IRA (if you live in CA).