A close up of a logo

Description automatically generated

Who will get the money in your IRA if something happens to you?

Congress created IRAs to encourage Americans to plan for their retirement, but it never intended for them to accumulate funds and defer taxes indefinitely. Unless an IRA owner takes specific steps, a large portion of those hard-earned IRA funds could be lost to taxes upon the death of the owner.

A Multi-Generational IRA (MGIRA) is a strategy that gives IRA beneficiaries the ability to stretch required minimum distributions (RMDs) over their individual life expectancies.

Why is an MGIRA strategy important? It allows your IRA beneficiaries to maximize the benefit of IRA assets they inherit from you by “stretching” RMDs over their individual life expectancies while the IRA assets continue to grow tax-deferred or even tax-free in the case of a Roth IRA.

An MGIRA strategy is available only if the IRA plan document or custodial agreement allows it and specific steps are taken. Your local retirement distribution specialist or tax professional can help you set up an MGIRA strategy. They can also do a FREE review of your current plan to ensure it is set up properly.

Source: I.R.C. § 401(a)(9)

Facebook Comments