Estate Planning: My 73 year old uncle has $1 million dollars in his IRA (lucky dog).?
We're trying to figure out how to make the IRA money get taxed the least. If he took all of it out now, what would his tax rate be? He has an annuity of $80,000 per year. When he dies, it would be taxed at least twice, right? Federal taxes, state taxes (he lives in NJ) and also an estate tax unless he dies in 2011 when the estate tax is repealed. Just trying to figure out the smartest way for him to manage his money. Thanks so much!
Public Comments
- He needs professional advice both for estate planning and financial management.
- It is subject to income tax as it is withdrawn. Deferred income tax would be a debt against it for estate tax purposes that would cancel out the double taxation.
