New Jersey Beneficiary IRA Lawyers
Beneficiary IRAs, also known as stretch IRAs, are special individual retirement accounts 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 IRS. A notable exception is qualified retirement assets like IRAs & 401(k)’s, which, if withdrawn by the beneficiary, will have to be reported dollar-for-dollar as income in the year received.
What Do I Do If I Inherit An IRA From My Parent?
At the Rice & Quattrone, PC, we advise and represent individuals and families regarding their IRAs and other important assets as they relate to estates. We can help you understand if 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.
Attorneys For Stretch IRAs In Cherry Hill And Linwood | Contact Us
Attorneys with the Rice & Quattrone, PC are admitted to practice in New Jersey and Pennsylvania. We advise and represent residents of those states regarding a variety of estate planning and estate administration matters, including serving as the local representative for out-of-state executors and beneficiaries of wills and estates in New Jersey and Pennsylvania probate courts.
Seeking a New Jersey attorney who understands beneficiary IRAs? Contact us to schedule an appointment with one of our lawyers.