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Multi-Generational IRAs in Fort Worth and Dallas

Most people have heard of traditional IRAs or Roth IRAs but there’s another option out there that can protect you in retirement and your family’s financial future at the same time. We’re talking about multi-generational IRAs and you’re going to see how this type of IRA fits into retirement income planning along with legacy planning. At DFW Retirement Planners, we’ll go over each IRA option with you in detail and help you choose which one will fit your retirement needs.

What Is A Multi-Generational IRA?

You may have never heard of a multi-generational IRA before, but don’t worry, you didn’t miss out on a new type of IRA. When we talk about multi-generational IRAs, we’re not talking about a specific type of IRA, we’re referring to a strategy that’s used to pass on the money in your IRA to your heirs. Sometimes this strategy is also referred to as a “stretch IRA.”

When you use an IRA as part of your retirement plan, the point of the account is to have a retirement income to live off of. But what happens if you don’t need all of the money that you’ve accumulated in your IRAs over the years? Many people would prefer to pass it down to their children, grandchildren, other family members or even their favorite charity. A multi-generational IRA is a strategy that’s used in order to ensure that the money you don’t need and use during retirement will be properly passed down to the people you designate.

Do I Need To List Beneficiaries?

Yes, in order to make this strategy work for you, beneficiaries will need to be listed. Just as important as listing your beneficiaries is remembering to update your IRA with new beneficiary information when needed. Sometimes people think that when they get married, assets automatically get transferred to their spouse in the event of death but due to other circumstances, this might not always be the case. You’ll need to keep beneficiary information updated to ensure that you’re legacy is getting passed down to the right person or people.

What Happens To My IRAs If I Don't List Beneficiaries?

It’s easy to assume that any money you have left over in your IRA accounts after death will automatically go to your spouse, other family members or another person that you designated in your will. While they may get a portion of what you’ve left, a good percentage of any money left usually goes to the IRS and government. If you don’t have any estate paperwork in place, there’s a good chance that the money will get tied up in court and quickly depleted. It’s important to list beneficiaries so that the money is distributed accordingly. In the same regard, it’s also essential to use this strategy if you want to pass your IRA accounts down to other people without forcing them to suffer steep tax consequences.

To find out more about multi-generational IRAs, our two offices are located in Fort Worth & Dallas, Texas and one of our experienced team members will be happy to answer any questions that you may have.

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