“You could take little crumbs out, and let it grow tax-deferred over decades,” said Ed Slott, a certified public accountant and I.R.A. expert in Rockville Centre, N.Y. Required annual withdrawals were based on life expectancy, so the technique was especially helpful for young children or grandchildren, whose mandatory withdrawals would be quite small.
Now, heirs have just 10 years to drain an account.
Financial Professionals are Encouraged to Attend Next Workshop in Nashville on July 9-10
NEW YORK, Feb. 25, 2020 -- With new retirement planning laws in place, the demand for education among financial professionals is higher than ever. This is evident as Ed Slott and Company's recent 2-Day IRA Workshop in San Francisco sold out in record time. More than 200 advisors attended this educational workshop where they earned CE credits and gained a new understanding of the opportunities and challenges surrounding the SECURE Act.
"The law simply says you must take out the money after 10 years," notes Slott. "Your heirs could simply leave the Roth alone for 10 years and let the assets grow tax-free--and then take a lump sum. All that growth is tax-free, and it comes out tax-free," Slott adds.