The Administration on Aging, along with a number of non-profit organizations, has created a new legal resource web site that is available to consumers, attorneys and advocates alike. It is a good starting point for anyone researching the legal rights and benefits of older Amercians. You can reach the new site by clicking here.
I heard something about converting a traditional IRA to a Roth IRA and how it would be a better way to pass an IRA on to one's children?
Traditional IRAs are taxable instruments of which when you pass to your children, you are passing the tax ramifications as well to them. In other words, if you have a traditional IRA with $400,000, when you turn 70, you have to start taking out a minimum required distribution. All that is considered taxable income.
The issue then becomes, what are my opportunities? We now have something called a Roth IRA, in 2010, there is an opportunity for people to roll their money from a traditional IRA to a Roth IRA. The difference is that with a Roth IRA, the withdrawals are totally tax free. Once you have transferred it out of a traditional IRA to a Roth IRA, your children can inherit this without any tax consequences.
What a bizarre headline !!!
But this is true, this was the headline in the Seattle Times last Sunday exposing the reality of Seniors face today. Here were few more disturbing headlines in the newspaper.
"We didn't know, and i didn't complain early enough to save her."
"Fragile, pushed out and paying a price."
I would hazard a guess that most of us do not believe that stuff like this will happen to us. But then, I doubt if any of the individuals featured in the Times thought this would happen to them
Here is the link to the full article here: Seniors For Sale
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