What Will Happen To Your IRA Upon Your Death?
Contributed by: Michele Procino-Wells, Esquire
As more “baby boomers” are retiring and rolling over large 401(k)s and other retirement plans to Individual Retirement Accounts (IRAs), proper tax and estate planning for IRAs has become increasingly important.
Upon your death, the beneficiary of your IRA can take the money out as fast as all of it right away, or as slow as payments over the beneficiary’s life expectancy. If the beneficiary is taking the money out as slowly as possible, the amount she or he has to take out every year is known as the required minimum distribution (RMD). Taking the money out as slowly as possible is known...