Plan for Prosperity with Walter Pardo: IRAs are Different

IRAs Are The Black Hole of Estate Planning

And Here’s why:

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  • IRAs pass by contract (generally not by will)
  • IRAs have required minimum distributions 
  • IRAs are highly taxed upon death or withdrawal
  • IRAs receive NO step-up in basis upon death
  • IRAs cannot be transferred to trusts during lifetime or after death
  • IRAs cannot change ownership during ones lifetime
  • IRAs cannot be owned jointly.

IRA’s have their own unique, ever changing rules regarding distribution during life and after death.
The, SECURE Act , which was passed in 2019, eliminated the stretch IRA. As a result, non-spouses that inherit an IRA or Roth IRA must empty the account by the end of the 10th year and this can cause significant additional taxes. 

These are just some of the realities of IRA’s.

IRA planning can be complex and overwhelming, so don’t do it alone.

To Schedule your 30 minute IRA Check-in meeting, Call Walter Pardo at 877-714-2362 or send visit WFP-Taxes.com