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Article: Cascading IRA beneficiaries.
- Article from:
- The Tax Adviser
- Article date:
- January 1, 2003
- Author:
CopyrightCOPYRIGHT 2003 American Institute of CPA's. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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EXECUTIVE SUMMARY
* A cascading beneficiary plan allows a surviving spouse to roll over an inherited IRA into his or her own IRA and stretch RMDs over a longer period.
* Naming a younger beneficiary results in lower RMDs.
* A surviving spouse can disclaim all or part of an interest in an inherited IRA and allow it to pass to younger contingent beneficiaries.
Most taxpayers would dramatically improve their family's finances by using savings and investment strategies that defer taxes. Capitalizing on this idea provides the basis for successfully accumulating and distributing retirement assets and lays the foundation for optimal estate ...