Financial thoughts and opinions

[ray1970]

This is going to be a splattering of weird questions and thoughts so bear with me.

Is there a benefit to having an IRA held in a trust versus just being held in an individual name?

Inherited IRA?s have to be depleted within ten years of inheriting them. I would think taking annual distributions over ten years would be the best way to spread out any tax liability? Also, what would be a good way to reinvest these distributions? Are there any workarounds for reinvesting these taxable distributions to avoid paying the taxes when the distributions are taken?

Yes. I realize everyone?s situation is different and that a person should seek advice from a trusted financial advisor.

Just wanted thoughts and opinions from the peanut gallery. Thanks.

[Great-Kazoo]

Move them to a plan where you're not taxed. Then start drawing on them once you hit 65-66. Taking them out now kills you tax wise.

[bczandm]

If the IRA was not in the will as going to a Trust I don't think you can put it in a trust. You can name a trust once it's your IRA but it can't be moved till you've died.

Taking a 1/10 out over the 10 years MIGHT spread the tax liability out but you need to check on what the liability is and how it's handled. Some of it may be due by the estate.

I am not aware of a way to take IRA distributions without paying tax on them.

You are correct as to seeking financial help as there are too many variables here for anyone to comment intelligently. Age, income, planned retirement age and many other issues need to be disclosed to make good decisions. My comments are simply from my limited knowledge and may be wrong.

[battlemidget]

+1 on the advice, and I'd go to an estate planner in addition to a financial pro. I'll throw in that disabled people have more options with IRAs than non-disabled people, but advisors don't bring it up unless you do.

[ray1970]

I'll throw in that disabled people have more options with IRAs than non-disabled people, but advisors don't bring it up unless you do.

Well, they do keep sticking me in handicapped rooms when I travel so maybe I have something going for me.

[BushMasterBoy]

I used to see a lot in the past, "your portfolio should be 10% precious metals". That meant you should have 10% of your wealth in gold/silver in physical form.

[MarkCO]

Yes, there are benefits with a Trust, but the IRS gets to look back and see why they think you did it and in some cases, that can be a very bad thing.

No, they don't have to be depleted in 10 years if you play it right.

Now that my sons are both 18, everything we own is going into a Trust. Everything my parents owned went into a Trust, made it SO much easier when my Dad passed, and will be pretty simple when my Mom passes. My FIL did not have a Trust, it was a royal PITA. My MIL and wife's step Dad, also no trust...friend drafted a "will", and it will also likely be a mess.

Here is an article...just remember, there are State specific issues as well. https://www.fool.com/retirement/plans/inherited-iras/

[theGinsue]

Now you got me questioning things...

In addition to my 401k contributions (pre-tax), I have some of my salary going into Roth IRA's (post-tax).

Do you/your heirs have to pay taxes on Roth IRA's too? Seems like double taxation.

[Aloha_Shooter]

I established a revocable living trust years ago. The main advantage between having assets -- IRA or otherwise -- in your trust is avoiding probate.

As far as Roth IRAs possibly getting taxed on both ends goes, realize the people currently in Congress and many of the bureaucrats inside the administration don't care about logic, facts, or history. They want as much of your money as they can get -- reasonably or otherwise -- to pay for the state and federal programs they value. The main reason I never established a Roth was that I didn't trust any of them to keep their promises about how a Roth is handled long enough for me to enter retirement. I still don't.