An IRA for the Generations

An IRA for the Generations

There are many advantages to investing in a Roth IRA. You have the opportunity to invest now and later withdraw your earnings tax free. Additionally, you can withdraw contributions at any time tax and penalty free. Unlike Traditional IRAs, there are generally no required minimum distributions (RMDs) unless inherited by a non-spouse.

These benefits not only make a lot of sense for the owner, but for heirs as well. The features of the Roth IRA make it a great financial vehicle for growing assets and passing them along to heirs upon death. Consider the following:

  • No RMDs allow for more account growth and possibly a larger death benefit that isn’t taxable to the beneficiary
  • An owner could potentially pass assets to a spouse who also would not be required to take RMDs
  • Upon the death of the spouse, the assets can then be passed to a much younger beneficiary who can take distributions over a much longer life expectancy

The Roth IRA is a great way to build assets while living and provides for an income tax-free inheritance that can be “stretched” across generations.

Contact your Wealth Advisor to determine if this is the right option for you.

The absence of a required minimum distribution is just one of the advantages the Roth IRA has over the Traditional IRA.

Contact your Wealth Advisor for more details.

Hilliard Lyons does not offer tax or legal advice. Please consult your tax advisor or attorney before making any decision that may affect your tax or legal situation. Securities offered through J.J.B. Hilliard, W.L. Lyons, LLC Member NYSE, FINRA and SIPC. ©2018 All rights reserved.

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