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Strategies & Market Trends : Roth IRA ideas -- Ignore unavailable to you. Want to Upgrade?

To: Sonki who wrote (115)	4/29/1998 1:30:00 PM
From: Steve Joyce	Read Replies (1) \| Respond to of 388

Sonki, Usually I deflect estate questions to a tax advisor only because certain situations are different for each individual. But...... Both the TIRA and RIRA are technically similar to a trust in and of themselves. You can name beneficiaries on either therefore the proceeds will go directly to the primary bene. and then to a secondary bene. in the event of the primary's death. In the event that no bene. is named on the IRA (either type) the proceeds then go to the estate of the owner. As far as the IRA going directly into the IRA of the bene....yes and no. If the bene. is a spouse then yes they can transfer the deceased spouses IRA directly into an IRA in the bene's name. If the bene. is a non-spouse bene. then they must take a distribution taxable to them at least as rapidly as the original owner was......(this is a provision if the RMD is already being taken by owner)....the second choice is to take a full distribution.......third take a systematic distribution based on the bene's non-recalculated single life expectancy to begin by 12/31 of the year following death.......the fourth is to leave the money in the IRA and to take a full distribution no later than 12/31 in the fifth year following death. The income question that you asked.......The limit is based on AGI so technically the money deferred into the 401k lowers the taxable income of the individual so......their income would qualify. I hope that I answered the ques alright.....I am home sick right now so I hope I didn't miss anything. SJJ

To: Sonki who wrote (115)	4/29/1998 2:48:00 PM
From: Howard R. Hansen	Read Replies (2) \| Respond to of 388

Steve Joyce answered most of your questions. However, I would like to add two additional points. One, the beneficiary of a Roth IRA can withdraw funds from a Roth IRA tax free for the life of the beneficiary. The beneficiary doesn't have to be a spouse to get this benefit. This extension to the life of a Roth IRA only happens once. Two if you are giving money to a charity when you die it is to your advantage to name the beneficiary of an IRA a charity. This tip comes from Erica Whitlinger on "Sound Money. Perhaps Steve Joyce can explain why but I assume if you leave an IRA to a charity it is not included in your estate.