pyriel
Active member
imported post
I've been looking at this thread and I don't see anyone jumping in to talk about IRA so I thought i'd give it a try. I love my kids so it is only appropriate that my sole wish at the end of my life is to leave my entire savings (whatever is left) to my two children, Pyriel and Gavreel. My wife and I hope that our real estate and our retirement checks will carry us throughout our retirement years and not to touch our TSP and ROTH IRAs. We plan on transferring our TSP into a traditional IRA then to ROTH IRA when we retire. For now, I'd like to talk about the advantages of rolling TSP, 401k, 403b, etc to an IRA later down the line when we retire.
1. Stretch Distribution for beneficiaries 2. Smoother state planning 3. More investment choices 4. ROTH conversion ability 5. Annuity investment 6. Greater flexibility, availability, and control 7. Account consolidation 8. Plan portability 9. Access to professional advice.
Out of the 9 advantages, #1, 2, & 4 appeals to me.
1. Stretch distribution for beneficiaries would allow my kids to stretch the IRA contribution throughout their lifetime; thus allowing the fund to grow with the power of compounding interest. Heck, they may even turn it over to their kids later.
2. Smooth estate planning also appeals to me IRA asset can easily be more coordinated with my overall estate plan than asset in a company plan. funds in a company retirement plan are subject to federal law, which for the most part requires that I name my spouse as beneficiary-unless my spouse signs a waiver. An IRA rollover does not avoid the spousal waivers but once the funds are in my IRA, I am not required to name my spouse as beneficiary. (please don't get me wrong. I love my wife and what I am saying is for explanation purposes only.)
#4 The ability to switch over to a ROTH IRA is probably the best option. Imagine being able to transfer all of our IRA funds to ROTH and our beneficiaries will never have to pay taxes ever. If they do the stretch distribution, this may provide them additional $$ throughout their lifetime. And if they play their cards right, they can even do the same with their children.
I am grateful that people within this board are striving to learn as much as they can about their retirement options however, I feel that there is not alot of thought about what is beyond our retirement and how our non planning now will affect the funds (that we work so hard all of our life) that we plan to leave behind to our beneficiaries.
Pyriel
I've been looking at this thread and I don't see anyone jumping in to talk about IRA so I thought i'd give it a try. I love my kids so it is only appropriate that my sole wish at the end of my life is to leave my entire savings (whatever is left) to my two children, Pyriel and Gavreel. My wife and I hope that our real estate and our retirement checks will carry us throughout our retirement years and not to touch our TSP and ROTH IRAs. We plan on transferring our TSP into a traditional IRA then to ROTH IRA when we retire. For now, I'd like to talk about the advantages of rolling TSP, 401k, 403b, etc to an IRA later down the line when we retire.
1. Stretch Distribution for beneficiaries 2. Smoother state planning 3. More investment choices 4. ROTH conversion ability 5. Annuity investment 6. Greater flexibility, availability, and control 7. Account consolidation 8. Plan portability 9. Access to professional advice.
Out of the 9 advantages, #1, 2, & 4 appeals to me.
1. Stretch distribution for beneficiaries would allow my kids to stretch the IRA contribution throughout their lifetime; thus allowing the fund to grow with the power of compounding interest. Heck, they may even turn it over to their kids later.
2. Smooth estate planning also appeals to me IRA asset can easily be more coordinated with my overall estate plan than asset in a company plan. funds in a company retirement plan are subject to federal law, which for the most part requires that I name my spouse as beneficiary-unless my spouse signs a waiver. An IRA rollover does not avoid the spousal waivers but once the funds are in my IRA, I am not required to name my spouse as beneficiary. (please don't get me wrong. I love my wife and what I am saying is for explanation purposes only.)
#4 The ability to switch over to a ROTH IRA is probably the best option. Imagine being able to transfer all of our IRA funds to ROTH and our beneficiaries will never have to pay taxes ever. If they do the stretch distribution, this may provide them additional $$ throughout their lifetime. And if they play their cards right, they can even do the same with their children.
I am grateful that people within this board are striving to learn as much as they can about their retirement options however, I feel that there is not alot of thought about what is beyond our retirement and how our non planning now will affect the funds (that we work so hard all of our life) that we plan to leave behind to our beneficiaries.
Pyriel
