IRA Roll Over

estate wills attorneyRolling Over IRA’s

An Individual Retirement Account (IRA) is an excellent way to save for your retirement.  Funds in IRA’s can be withdrawn without penalties starting at age 59 ½. You must start withdrawing funds from your IRA at age 70 ½.

Beneficiary Rollovers

The beneficiary of an IRA, upon the death of the creator of the account, instead of taking the funds immediately and paying income taxes on them, can roll the account over to his or her own IRA.  This would allow for further deferral of income taxes on the funds in the account until this individual reached the age of 70 ½.  Up until January 1, 2007, only spouses had this ability to roll over the funds in an IRA.

Contingent Beneficiaries

If you are married and your spouse is named as the beneficiary on your IRA account, it is important that you also name contingent beneficiaries.  If you have children, they would be the most likely individuals for you to name as contingent beneficiaries.  This will allow your children, should your spouse predecease you, to roll over this IRA account into their account without paying income taxes on these funds.   This will allow for a continuation of the tax deferral nature of the IRA.

About The Author

retirement planning Elliot S. Schlissel, Esq. is an elder law attorney with extensive experience regarding wills, trusts and estate matters.  Should you have questions or issues on estate planning, wills or trusts matters, feel free to call him at 1-800-344-6431, 516-561-6645 or 718-350-2802 for a free consultation.

Chat Banner

Can We Help You?