Right now, there are $7 trillion dollars accumulating tax-deferred in qualified accounts like IRAs and 401(k)s. Chances are, a significant percentage of that hefty total will never be used as income. Those who live off of pensions or Social Security would rather continue to defer taxes on their qualified money and let it accumulate for as long as possible.
But tax-deferred does not mean tax-free. One way or another, the government is going to collect tax revenues from that money. Whether your client pays taxes when they take voluntary withdrawals, or they’re forced to take Required Minimum Distributions starting at age 70½, or their beneficiaries pay the taxes when the money transfers to them, it’s a matter of when and how the taxes will be paid, not if.
This report describes three wealth transfer strategies to help you ensure that your clients aren't simply growing a larger tax burden for their children by letting these qualified assets accumulate.
Get tips on how to: