Truth Unveiled: IRS Is The Beneficiary Of Your IRA?

 

You’ve worked all your life to save your IRA.

You have invested wisely and then the day comes when it you pass it on to your kids.

You think you’ve done the right things to organize your estate but there is another silent beneficiary of this money besides your children.

It’s one you didn’t even list in your will.

Their name is Internal Revenue Service. 

When you and your spouse (if you have one) die, your IRA becomes fully taxable.

Up to a third or more can be instantly vaporized by state and federal income taxes and the principal and interest that could have been earned on that money is gone forever.

Children are cut out of the will  by virtue of  being uninformed about their options.

Now here is the really bad news.

When your IRA passes to your children, THEY also inherit YOUR tax bill for the IRA. 

The children are the ones who will have to take money from their pocket and pay taxes on the IRA inheritance.

They must include the inherited IRA value on their IRS 1040 form with all their other household income.

This then forces your children into a higher tax bracket.

It’s truly a tax disaster, but it’s a feast for the IRS!

Why is this happening?

The income tax code is purposely complex. The IRS takes advantage of this fact.

Settling an estate is the most complex business transaction most family executors will face in their lives.

They don’t even know the questions to ask.

This is the #1 reason why catastrophic losses of financial savings occur when someone dies.

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