In today’s episode, David McKnight discusses what many people don’t get about the IRS and what happens to their IRA and what their children are supposed to get at some point.
Many people spend decades building up tax-affirmed retirement accounts without fully appreciating what happens when those accounts pass to the next generation.
When a spouse inherits an IRA, they get the most favorable treatment under the tax code. In fact, they have options that nobody else gets – like the spousal rollover.
David touches upon the so-called Stretch IRA, which he considers one of the greatest estate planning tools ever created, and the 10-year rule.
The scenario in which this episode sits is a time when the U.S.’ fiscal trajectory suggests future tax rates are likely to be dramatically higher than they are today.
“We’re over $39 trillion in debt, with a debt projected to grow by $2 trillion per year for the next 1+ years, and $3 trillion per year after that,” says David.
David explains why he talks about Roth conversions and Roth IRAs frequently on this channel, as well as what you could give to your children that’s more valuable than an inheritance.
Mentioned in this episode:
David’s national bestselling book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track
Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight
PowerOfZero.com (free video series)
@mcknightandco on Twitter
@davidcmcknight on Instagram
David McKnight on YouTube
