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Old 07-10-2019 | 11:21 PM
  #41  
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Originally Posted by ThumbsUp
One thing left out of this is that this only applies to traditional assets. Roth assets can still be given to heirs as In the past.

Good case for converting assets slowly.
Distributions have to be completed within 10 years, Roth or Traditional.
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Old 07-11-2019 | 05:24 AM
  #42  
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Originally Posted by Viperstick
Distributions have to be completed within 10 years, Roth or Traditional.
True, the barrons article I was reading made it sound like that was not the case. At least those assets would remain tax free.
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Old 07-11-2019 | 08:26 AM
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Originally Posted by ThumbsUp
True, the barrons article I was reading made it sound like that was not the case. At least those assets would remain tax free.
Yes, but your heirs will lose the benefit of tax free compounding over a longer period of time. From a Forbes article explaining what would happen to a $1M IRA left to an heir.
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Old 07-11-2019 | 10:44 AM
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Originally Posted by Viperstick
Yes, but your heirs will lose the benefit of tax free compounding over a longer period of time. From a Forbes article explaining what would happen to a $1M IRA left to an heir.
Man, I’m hoping I’m not dead when my kids are 46. Not sure of the basis of that graph. At least for a Roth, there’s no way that is even possible. The withdrawals aren’t taxed. Understand the curtailing of the length to 10 years, though.

However, when you read the bill itself, section 401, in which the 10 year rule applies to children which have reached the age of majority, appears to only apply to defined contribution plans.

Check it out yourself...

https://www.congress.gov/bill/116th-congress/house-bill/1994/text#toc-H084B5EBD76DF47C0B895121999E2270E
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