- Though it is true that the Roth IRA receives no special treatment as far as Estate Taxes are
concerned it can have TREMENDOUS advantage for your heirs. The beneficiary can elect what is
known as "life expectancy" rule. This means that the profits being generated in the Roth can
continue to pile up TAX FREE for your heirs.
The rule simply means that the life expectancy of 83.3 years is used and if the beneficiary is now 50
years old then the Roth IRA can continue for another 33.3 years. The balance of the Roth the first
year is divided by 33.3 and that amount MUST be taken as a distribution. The next year what ever the
balance is in the Roth will be divided by 32.3 and taken as a distribution. This continues for 33 years
until the last year it's divided by 1 and ceases to exist. Larger distributions CAN be taken but following
this formula there can be tremendous Estate advantages to your heirs.
Imagine if your Check Book Roth IRA owned royalties, mortgages, commercial rental property or other
income generating investments. The income can be tax free to your heirs even after your death. It
can be a tax free gift that keeps giving for years to come.
Call us to set up your Check Book Roth IRA today!
Roth TAX FREE IRA with our Check Book IRA.
Call Steve today (541) 420 - 6302
