December 10, 2013
While traditional IRAs can enable you to stretch your wealth free from taxes, they have limitations when it comes to estate planning. The Private Client Reserve’s Sally Mullen and Michael Poulter discuss a new option: the U.S. Bank Heritage IRA™, which may give owners more control over how the asset is distributed to their beneficiaries — and more confidence that their savings will be managed in the way they intended. Keep in mind that U.S. Bank and its representatives don’t provide tax or legal advice; you should consult your tax or legal advisor for information concerning your situation.
Potential Benefits of the Heritage IRA
Mullen: Individuals often have little say in how their wealth is managed once they’ve passed away, and that can be frustrating for some traditional IRA owners. One of the primary goals of the Heritage IRA is to help owners stretch the benefit over their lifetime and the lifetime of their beneficiaries. Mike, why might that be attractive to certain clients?
Poulter: The primary benefit of a traditional IRA is its qualified function: The assets you put in are not taxed until they are taken out. The goal for most traditional IRA owners is to stretch that benefit as long as they can by avoiding taxation of the asset for as long as possible.