Transfer to Grandchildren while You can
Congress allowed individuals to transfers their IRA account or 401(k) to a Roth IRA last year without the restriction that barred the conversion to those earning $100,000 or less. Individuals are allowed to give up to $5 million to their grandchildren without encountering the generation-skipping tax. The exemption is planned to end in 2013. Grandchildren will benefit more from a Roth IRA due to a longer life expectancy than a child. Due to the fact that Roth holders are not required to take distributions after the age of 70.5, the Roth IRA is the best way to save assets for their successors. Individuals are not required to pay income taxes on assets moved from another retirement account. Congress may end this estate-planning option before 2013, so take advantage of this deal while you can.
To learn more about this article, visit Clients Need to Act Fast to Benefit From Congress' Sweet Estate Planning Deal
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For more information, please contact Wood, Atter & Wolf, P.A., in Jacksonville and Ponte Vedra Beach, Florida.
