Roth IRA question
I have a 69 client with two Roth IRAs that he is planning to leaving to his wife and children. I was thinking about using those funds to invest in a wealth transfer/insurance policy to leverage and amount that he can leave to his beneficiaries but I didn’t know what impact that would have on his taxes. I know that Roth IRA are tax free, after the waiting period, I didn’t know if withdrawing those funds, for reporting purposes, would have any unforeseen consequences.
Permalink Submitted by Alan - IRA critic on Fri, 2013-04-26 19:17
There would not be any tax liability for the Roth distributions as long as he has met the 5 year holding period.
Permalink Submitted by Eric Woodfill on Sun, 2013-04-28 23:46
I guess I was wondering if there would be any impact on his social security benefits on the amount that could be taxed based on income earning limits. I am fairly fluent on the rules regarding Roth IRAs, my real question waas the social security isse if there was one.