IRA’S AND RETIRING PLANS: DEFUSING THE TAX TIME BOMB

Cashing out before death simplifies the estate tax consequences since the IRA distribution, while subject to income tax, will be removed from part of the estate. Distributions should be tailored to comply with the excess distribution rules of IRC Sec. 4980A. Because of the IRA’s deferral aspects, a cash-out should occur shortly before death. ................
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