Roth IRA Conversion Might Equal Estate and PA Inheritance Tax Savings





Roth IRA Conversion Might Equal Estate Tax and PA Inheritance Tax Savings. Many individuals are considering whether or not to take advantage the new Roth IRA conversion rules. Read this Smart Money article for some of the issues to consider for Roth conversions. This decision will require an in depth analysis of each individual’s circumstances and goals. That being said, the Roth IRA conversion is likely to create a PA Inheritance and Federal Estate Tax savings in estates where thoss taxes apply. Generally speaking, paying the income tax associated with your IRA now will serve to reduce the overall size/value of your estate. This will theoretically reduce the assets subject to estate and inheritance tax at death and help avoid the possible “double or triple taxation” of your IRA at death. The possible estate and inheritance tax savings are not the sole determining factors, but can likely be placed in the positive column when making the overall assessment to covert your traditional IRA or not.

Please feel free to contact us any time at 610-933-8069 or dkaune@utbf.com to discuss your particular estate/probate case to determine the appropriate fee structure for an attorney or executor.

  • Facebook
  • Twitter
  • LinkedIn
  • Add to favorites
  • Email
  • RSS
  • Print