My IRA
I am 74 and married. I have a $1.5 million IRA. What should I do with it? Assuming I pass away first, my main concern is that the IRA provide for my wife during her lifetime. She is 73. David
I am 74 and married. I have a $1.5 million IRA. What should I do with it? Assuming I pass away first, my main concern is that the IRA provide for my wife during her lifetime. She is 73. David
Permalink Submitted by Bruce Steiner on Mon, 2011-04-04 17:01
You could leave it to me. Or, since your first concern is your wife, you could leave it to her.
If you want specific advice geared to your particular situation, you should speak with the attorney who handles your estate planning.
Permalink Submitted by Alan Spross on Mon, 2011-04-04 22:22
First, you should be sure to take your annual RMDs.
You also wish to get with a financial planner to see if some Roth conversions are to either your or your wife’s advantage. If you pass first your wife will inherit the IRA is she is properly named as beneficiary and she can then continue it just as you would have. Any amounts converted to a Roth IRA will no longer have RMDs until a non spouse beneficiary eventually inherits it from you or your wife.
Be sure the beneficiary designations are current and correct. Do not name your estate as beneficiary.
If your wife is not up to managing this large an amount if she inherits it, make prior arrangements will a professional to handle it for her, both from an investment standpoint, to meet RMD requirements and other estate related issues.
Probably best not to leave it to Bruce. His tax bracket is probably already too high 🙂
Permalink Submitted by John Clark on Wed, 2011-04-06 15:39
1. Check the beneficiaries carefully!
2. Be wary of “Guaranteed income benefits” as most are based on one life. You might drain your IRA and think Income is going to your spouse. Many times, it won’t.
3. An IRA going into trust for your wife might be right, but be very, very careful as most trusts are not worth the paper they are written on. Your wife won’t have to worry about a million dollar trust if it is done incorrectly, there will only be half that after tax!
4. Perhaps fund some life insurance with the RMD. Just a thought! Good luck and get some help!