Law Blog Roth IRAs: One of the Better Estate Planning Tools Available?
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July 01, 2014
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CHWM | - Articles
According to a recent article in the Wall Street Journal, the best financial asset to leave your heirs is a Roth IRA. Unlike an IRA or a 401k Plan, a Roth IRA is funded by after-tax money; that is, you do not get a tax deduction for contributions to a Roth IRA (as opposed to contributions to an IRA or 401k Plan). However, after a five-year "vesting" period, during which you cannot receive any distributions without tax consequences from the Roth IRA, you may receive distributions from the Roth IRA tax free.
