Question
Annabelle is updating her retirement and estate plans in light of the beneficiary distribution changes made by the SECURE Act. Her only living relative is
Annabelle is updating her retirement and estate plans in light of the beneficiary distribution changes made by the SECURE Act. Her only living relative is her son, Zeus, age 40, who is named as the beneficiary of Annabelles IRA (current account balance $900,000). Annabelle is retired and is in the 12% tax bracket. Zeus is a successful attorney in the 37% tax bracket. Which of the following actions by Annabelle is likely to result in the greatest amount of wealth transfer to Zeus?
a. | Establish a see-through trust. | |
b. | Establish a trusteed IRA. | |
c. | Convert a portion of the IRA to a Roth IRA each year. | |
d. | Take a full distribution from the IRA and deposit the funds in a brokerage account. |
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