IRA Pitfall to Avoid; How to Deal With What Parents Left Behind
By The Slott Report Staff
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Handling the estate and IRA issues of parents after their death is a difficult undertaking, especially when it is done during the normal grieving process. How do you legally close out the estate? How do you handle that IRA with all of your siblings listed as beneficiaries? The Chicago Daily Herald wrote a recent article that answered these questions. In this article, Ed Slott talked about the IRA issues facing beneficiaries.
Ed told the Herald, “The scary thing is that most IRA advisers are very good at getting you to make the initial investment, but don’t know anything about beneficiaries and post-death distributions.”
Go here to read the entire article.
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In other recent online reading, Terry Ellis’ ENTIRE IRA was deemed a taxable distribution because he thought he could use his IRA money to fund his business. Ed Slott goes into the details of the court case and the major IRA pitfall you must avoid in his regular Financial Planning column.
The appelate court ruled that Ellis’ “salary” was a prohibited transaction because he was indirectly transferring funds from his own IRA and using them for his own benefit.
Go here to read the entire article.
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