Talking new tax laws
Traditional IRA
allows you to save money for retirement
reduces taxable income
grows tax deferred
BUT the taxes are still there when you want the money
NOT tax free - directly
to manage how much income they are taking from their IRA they take it bit by bit to minimize cost
Inherited IRAs do not have bankruptcy exceptions
Beneficiaries in a trust are based on how the trust allocates the IRA
Trusts
Taxed extremely quick
Easy to reach the top tax bracket
Leaving your IRA over to a trust can really backfire
Roth IRA
Money goes in and gets taxed right away, then grows tax free
Rather conversions can be a tool
Having an advisor is a critical component to understanding everything that is going on
June 20, 2019