
EP 13 - What Happens to an IRA or 401k When the Owner Dies?
Directed IRA Podcast
00:00
The Trust Tax Rate Is Lower Than the Individual Rate
When you're distributing funds out on a traditional iray to the kids, ah, you know, they're paying tax at their rate. Thif you're distribunig out over time, they'rel not getting into a huge tax rate. The individual rates are lower than the trust tax rates. So that's the more efficient way to do it. And at the end of ten years, and there's a larges balance still left in the account, um, and the kid is in good financial situation. Just though yout they'll have to distribute the whole thing to them,. Um, and they'll get a large tax bill that year for the large distribution. But,
Transcript
Play full episode