You want to help your children and grandchildren benefit from your prudent investments. Secure Money Advisors can help.

IRA Legacy Planning

Increased payouts – and minimized taxes – can be achieved through strategic IRA legacy planning.

Traditionally, IRAs have been one of the most popular retirement investments because they generate income, minimize taxes and – best of all – offer an opportunity for maximum tax-deferred payouts to beneficiaries – such as children and grandchildren. The latter, also known as Inherited IRAs, have always been a treasured gift, for both the income it provides and its tax-deferred component. Unfortunately, the IRS has passed a new regulation that impacts IRA legacy planning. For more detailed information about IRA legacy planning please call our office at 724-382-1298 or complete the meeting form to the right to start a dialogue.

Secure Money Advisors’ View on IRA Legacy Planning

When it comes to IRA legacy planning, we will take any advantage we can with the current tax code to benefit our clients. This view fits with our overall 5-point investment strategy, which includes:

  • Making sure you have a great income plan
  • Making sure your investment strategy is strong
  • Making sure you take advantage of all potential tax breaks
  • Making sure you have a good plan for health care
  • Making sure you take time for legacy planning

Remember: Taxes and IRA legacy planning go hand-in-hand. It doesn’t do you much good to make 20, 30 or 40 percent annually on your portfolio if the largest beneficiary is the IRS.

When you work with us, we’ll help you put together an IRA legacy plan that will allow you to pass on your wealth to your family – if you choose – without serious tax implications.

Secure Money Advisors’ IRA Legacy Planning Strategy

Our legacy planning strategy focuses on what is known as an Inherited IRA. This special IRA – which has considerable tax benefits – has to be implemented at the time of death of the benefactor. However, if the beneficiaries are unaware of the advantages of an Inherited IRA and take their inheritance in cash, they likely will be subject to significant taxes on those funds.

Here’s how we advise our clients to thoughtfully prepare for and handle this situation:

  • We teach our clients early on how to establish an Inherited IRA as part of their overall retirement investment strategy.
  • The Inherited IRA becomes part of a check list that we revisit every time we meet.
  • Over time the Inherited IRA moves into sharper focus as our clients begin to consider their legacy plan to benefit their families.
  • When the time is right, we prepare all the documents so there is a smooth transfer of funds from the portfolio to the Inherited IRA.
  • We are always available to answer any questions the Inherited IRA beneficiaries may have.

Frequently Asked Questions

Why is legacy planning important?

If you decide to pass on your investment income to your family, you’ll want to do so in a way that will keep the IRS from claiming a significant percentage of the money.

When should I consider developing a legacy plan?

It’s never too early to think about a legacy plan. We like to make it a part of the overall retirement investment strategy so it’s always on the checklist as something to discuss, especially as the years go by.

What’s the benefit of an Inherited IRA?

An Inherited IRA allows your beneficiaries to place inherited funds in a tax-deferred account, where they can invest the money and receive annual disbursements.

When is an Inherited IRA established?

Inherited IRAs are best planned in advance but are established upon the death of the benefactor.

How will my family understand how an Inherited IRA works?

We’ll be available to brief them on all the key aspects of an Inherited IRA and answer any question they have.