You have spent decades working and building up your retirement account. You are trying to delay the time in which you are required to start taking distributions from that account. You are then trying to take the smallest amount of money out of that retirement account based on your life expectancy. You do this to try and pay less in income tax. You view your retirement account as a long-term safety net.
Naturally, you would want this same preservation mindset for the beneficiaries of your retirement account. However, under the SECURE Act and SECURE 2.0, most non-spouse beneficiaries must fully withdraw that retirement account within 10 years.
Wouldn’t it be great if your beneficiaries could better preserve the IRA that you left them, drawing from it gradually over a longer period. That’s where a Charitable Remainder Trust can help by accomplishing the following:
·Restoring a similar stretch-like-treatment by allowing annual distributions to beneficiaries over a period longer than 10 years.
·Income Tax Deferral: Instead of taking distributions out over 10 years, beneficiaries can take distributions over a longer period of time, and thus pay less in income tax each year.
·Providing a portion for charity: Being charitably inclined is important for this plan to be successful. The portion of the retirement account that goes to charity may result in an Estate Tax charitable deduction.
For more information, please join us for an upcoming FREE seminar. If you have questions or concerns about your estate plan, contact the experienced estate planning attorneys at Sinclair Prosser Gasior by calling (410) 573-4818 to schedule an appointment. Sinclair Prosser Gasior Annapolis Headquarters office is now located at 183 Harry S. Truman Pkwy, Suite 104.
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