Taft partner Aaron H. Kaplan was recently quoted in The Wall Street Journal article, “What to Know About RMDs and Retirement Planning,” which was published on Nov. 27.
The article discusses required minimum distributions from qualified retirement plans and various planning opportunities that may be available to account owners. After highlighting the benefits of shifting funds from a tax-deferred account to a tax-free account (a Roth conversion), Kaplan stated that “many people don’t understand how powerful conversions can be.” Kaplan further stated that while a hit is taken upfront by paying taxes on the conversion itself, the resulting Roth IRA or Roth 401(k) won’t incur any taxes thereafter. The article stresses that larger retirement plan balances are more likely than smaller ones to eventually pass on to beneficiaries like adult children or grandchildren, and having those inheritances come in the form of Roth accounts can be quite valuable to those heirs.
To read the full article, visit here (note: subscription required).
Kaplan focuses his practice on estate planning, probate administration and trust administration, providing counsel to individuals, families, small businesses and tax-exempt organizations.