After finally getting my FIRE spreadsheet built-out a bit further with a bit more historical data and future predictions I started to see the timeframe I was about to retire.
This spurred a conversation with the ole man and we got on the topic of RMD somehow so I decided to mark those dates for me and the ole man just for fun. It was then I realized (barring no change to the law) I would hit my RMD at 70 1/2 which would be the same year my ole man would turn 99 or in other words likely dead or near passing.
This spurred a bit of a tax discussion which ultimately led nowhere becauase neither me nor the ole man can predict the future tax code but left us pondering the question, how do I avoid a massive estate tax that I will likely be hit with from my ole mans inheritenane right around the same time I have to take RMD from my 401k/IRAs. I was initially planning for these to be lowest possible income years but I can foresee this might not be the case now with me taking RMD and looking at the inheritence coming in during that time.
Looks like inheritence wouuld be around $1mil. which I won't need and neither will any of my sisters...so it looks like giving it to his grandkids (and perhaps charity) would be ideal for my ole man.
My dad has not retired yet and I fear his lack of strategy will promote unneeded tax consequences.
Is a Stretch (inherited) IRA the best way to pass on wealth to your heirs...or is there something else worth pursueing that I am missing?
My ole man does not plan on touching anything in his 401k (no Roth) so I am looking for the smart thing to do so his grandkids will see the most money and I am open to simple and complex advice.
This spurred a conversation with the ole man and we got on the topic of RMD somehow so I decided to mark those dates for me and the ole man just for fun. It was then I realized (barring no change to the law) I would hit my RMD at 70 1/2 which would be the same year my ole man would turn 99 or in other words likely dead or near passing.
This spurred a bit of a tax discussion which ultimately led nowhere becauase neither me nor the ole man can predict the future tax code but left us pondering the question, how do I avoid a massive estate tax that I will likely be hit with from my ole mans inheritenane right around the same time I have to take RMD from my 401k/IRAs. I was initially planning for these to be lowest possible income years but I can foresee this might not be the case now with me taking RMD and looking at the inheritence coming in during that time.
Looks like inheritence wouuld be around $1mil. which I won't need and neither will any of my sisters...so it looks like giving it to his grandkids (and perhaps charity) would be ideal for my ole man.
My dad has not retired yet and I fear his lack of strategy will promote unneeded tax consequences.
Is a Stretch (inherited) IRA the best way to pass on wealth to your heirs...or is there something else worth pursueing that I am missing?
My ole man does not plan on touching anything in his 401k (no Roth) so I am looking for the smart thing to do so his grandkids will see the most money and I am open to simple and complex advice.