When considering which assets to leave your beneficiaries, there’s one asset that’s loaded with taxes: IRAs. Inheriting an IRA is very different from inheriting a Roth IRA. In fact, without proper planning, as Peter Richon with Richon Planning explains to Erin Kennedy, the #irs may end up being your largest beneficiary!
Distributions from an inherited Roth account are both tax and penalty free, which means you won’t saddle your heirs with a heavy tax burden during their prime earning years.
