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Beneficiaries of Traditional IRAs must pay income taxes. Given a terminal disease, Better to withdraw the balance of the IRA (10% penalty)and then gift that money instead?
Beneficiaries of Traditional IRAs must pay income taxes. Given a terminal disease, Better to withdraw the balance of the IRA (10% penalty)and then gift that money instead? Large traditional IRAs could push the beneficiary into the highest tax brackets. Gifts aren’t taxed under like 7 million in 2025. Should the IRA owner take an early withdrawal and just gift that money while they are still alive? Especially if that IRA owner is only expected to live less than a year? What am I missing?
submitted by /u/Aus...
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