What’s up Tax Auction Investors family!
Today is going to be a short, but very powerful writing on an awesome wealth vehicle you can pass down to your kids.
So first, let’s get the legal jargon out the way. We are not tax attorneys nor CPA’s. This article is for informational purposes and you should consult your own tax attorney and/or CPA regarding what is best for your situation.
Let’s get started. If you are like me, then you live day-to-day and work as hard as you do for your legacy.
Sure, your financial freedom for yourself is important, but the ultimate goal is to set up your kids and grandkids…at least it is for me.
One of the best gifts you can set up and have passed down to your children is a Roth Self-Directed IRA which allows you to make your own investment decisions.
Understand that Roth SD IRA’s allow you to name a beneficiary or beneficiaries to pass the vehicle to upon your passing, tax free.
Now here is the awesome part, your beneficiary can take distributions from that vehicle tax free without penalties for the rest of their lives.
Your child just inherited a tax free vehicle they can continue to grow and access for the remainder of their existence.
Sure, there are some caveats they will need to make sure they adhere to like mandatory distributions, but a knowledgeable attorney will guide them through that.
Some people call these Stretch IRA’s!
Whatever you call them, they are awesome wealth building vehicles for your loved ones.
Or better yet, have their grandparents set one up for them today.
Do you see where I am going with this?
Just remember, whomever sets these up must have earned income and it can’t be in the form of rents, dividends or any other type of proceeds the IRS doesn’t deem as income.
Hope this helps. Take care and we will talk soon.