Beneficiary IRA Planning Attorneys in New Jersey and Pennsylvania

Beneficiary individual retirement accounts (IRAs), also known as “stretch IRAs,” are special IRAs that can be used effectively for certain tax purposes. Specifically, beneficiary IRAs are useful when the designated beneficiary is not a spouse.

Generally, the assets a person inherits are not treated as income by the Internal Revenue Service (IRS). A notable exception is qualified retirement assets like IRAs and 401(k)s, which, if withdrawn by the beneficiary, must be reported dollar for dollar as income in the year received.

What if I Inherit an IRA from My Parent?

At Rice & Quattrone, we advise and represent individuals and families regarding their IRAs and other important assets as they relate to estates. We can help you determine whether setting up a beneficiary IRA is in your best interests.

A beneficiary IRA will help you:

  • Stretch out income over your life expectancy
  • Allow the rest of the IRA to continue to grow tax-deferred
  • Minimize your tax exposure

What Should A Parent Do?

Designate your individual children, not your estate, as beneficiaries of your IRA. If you do not make proper arrangements regarding IRAs, even accounts that you want to give to your spouse or children, your intended beneficiaries may need to report every dollar in that IRA as income when you pass away. This issue calls for the help of an experienced estate planning and estate administration lawyer.

Consult With Us About Your IRA Concerns

Our attorneys at Rice & Quattrone are admitted to practice in New Jersey and Pennsylvania. We advise and represent residents of those states on a variety of estate planning and estate administration matters, including serving as local representatives for out-of-state executors and beneficiaries in New Jersey and Pennsylvania probate courts.

If you are seeking an attorney who understands beneficiary IRAs, contact us online to schedule an appointment with one of our lawyers. You can also reach us over the phone at 609-398-3447 or 856-673-0048.

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