From the time we enter the workforce, most of us are conditioned to start planning for retirement. There is a very good reason for that – living comfortably during your “Golden Years” requires years of planning ahead and careful saving. In today’s world, one of the most popular tools used to plan for retirement is an Individual Retirement Account, or IRA. Understanding how your IRA and retirement plan fit into your overall estate plan is crucial to ensuring a successful and comfortable retirement. Toward that end, the estate planning attorneys at The Mendel Law Firm, L.P provide answers to some frequently asked questions about IRAs and retirement planning. If you have additional questions or concerns, please feel free to contact our office to schedule an appointment.
What Is an IRA?
Are there different types of IRAs?
What happens to my IRA account when I die?
What options do I have if I inherited an IRA?
- Treat it as your own IRA by designating yourself as the account owner.
- Treat it as your own by rolling it over into a traditional IRA, or to the extent it is taxable, into a:
- Qualified employer plan
- Qualified employee annuity plan (section 403(a) plan)
- Tax-sheltered annuity plan (section 403(b) plan)
- Deferred compensation plan of a state or local government (section 457(b) plan), or
- Treat yourself as the beneficiary rather than treating the IRA as your own.