Ed Slott: How Roth IRAs Can Help With Estate Planning
- RetirementGuy
- May 29
- 1 min read
You call the Roth IRA the Swiss Army knife of tax planning. I’m wondering if you can talk about what you see as the chief tax advantages.
Most people look at it one-dimensionally. Well, I get it. It’s a Roth IRA. I like the idea. It grows income tax-free for life. There are no required minimum distributions during my lifetime. I love that. You did have to pay the tax upfront but look what you get. You get tax freedom for the rest of your life and even 10 years beyond for your beneficiaries. They can pull it out at the end of the 10th year after death, the nonspouse beneficiaries, income-tax-free. So, that’s pretty much what people think about Roth IRAs and that’s what they are. But there are creative uses of that money. Piling up Roth IRAs really can help in a number of situations. I’ll give you some examples.
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