Benefits of a Tax Deferral Plans
The most valuable feature of traditional tax-favored retirement plans is the ability to invest without current taxation of the investment profits. For example, a 38 year-old beneficiary who inherits a $500,000 traditional IRA and withdraws it using the life expectancy method with have $1,696,000 inside the IRA plus $1,432,000 outside the IRA in 30 years. In comparison, if he cashed out the entire account when he inherits it, he will have (outside the IRA) only $1,470,000 (assume an 8% of return and 36% tax rate).
Talk with an estate planning attorney to learn more about tax deferral plans. Cleveland, Ohio attorney Dan Baron at Baron Law LLC can help you plan for your estate. Contact Ohio attorney Dan Baron today at 216-573-3723. You will speak directly with an attorney who will help you with your estate planning and tax planning needs.