IRD tax eats in to IRA beneficiaries’ lump sum
Question: I am fortunate enough to have a lot of money in my IRA. Is there a tax on the IRA when I die? My wife died a few years ago and I intend to leave my IRA to my children. I would like them to enjoy my money, not just look at it. Can’t I do that?
Answer: No problem.
But don’t labor under the illusion that (a) there are not taxes on your IRA at death, or that (b) 100 percent of your IRA will go to your children.