The Roth IRA: A powerful estate planning tool

Description

Abstract: A Roth IRA may not be the first thing that many think about when considering estate planning techniques. After all, not only is it designed to be a retirement savings vehicle, but the income of wealthier individuals keeps them from being eligible to contribute. However, beginning in 2010, conversions from traditional IRAs are available to taxpayers at all income levels. This article looks at some of the pros (and a few possible cons) of Roth IRAs involving distribution requirements, income tax considerations and possible estate tax savings. A sidebar discusses the benefits of Roth IRAs for kids.