RetireBy90
Thinks s/he gets paid by the post
Well, I guess it was a question of when not if. Reading yesterday WSJ on B9 there is an article on a senate proposal that would give heirs five years to empty inherited IRAs or 401Ks. Sen Baucus said they are intended for retirement but are being used by some to give tax-free benefits to second, third and maybe even fourth generations.
Doesn't look from the article to be likely to happen today, but once they start looking at where to get more $$$ are any of the tax advantaged accounts safe?
Quoted Ed Slott as pointing out one problem (other than failure of congress to keep you hands off my $$) such as once the $$ comes out of an IRA it is not sheltered from creditors.
He goes on to suggest that if this was to happen, some other stratagies would include taking the IRA $$ and buying a life ins policy that you fund or setting up a trust to get the $$ and pay it out to the heirs.
Guess this is something to keep in mind. No guarentees but death and taxes.
Doesn't look from the article to be likely to happen today, but once they start looking at where to get more $$$ are any of the tax advantaged accounts safe?
Quoted Ed Slott as pointing out one problem (other than failure of congress to keep you hands off my $$) such as once the $$ comes out of an IRA it is not sheltered from creditors.
He goes on to suggest that if this was to happen, some other stratagies would include taking the IRA $$ and buying a life ins policy that you fund or setting up a trust to get the $$ and pay it out to the heirs.
Guess this is something to keep in mind. No guarentees but death and taxes.