[trebb]

Our grandkids are our beneficiaries and we have instructions/hints in our wills advising them to transfer them into their own IRAs to get around any of the existing death taxes - and let them know that the IRS will demand some distributions earlier than if they had their own IRAs - looks like we will have to do some research and revamp...other accounts and cash from sale of our condo should help them with college if they so desire if they can keep the IRA status of the main portion of our estate safer for longer.

[moovova]

It almost sounds like the IRA owners should pull their funds out of there IRAs prior to death, take the tax hit at their lower rate as non-earners...THEN pass the funds on to their kids.

[Svartalfiar]

Our grandkids are our beneficiaries and we have instructions/hints in our wills advising them to transfer them into their own IRAs to get around any of the existing death taxes - and let them know that the IRS will demand some distributions earlier than if they had their own IRAs

But can you take an IRA/401k disbursement and put it back into an IRA? At best, I think you would have to take the disbursement, pay taxes, then you can put it into a Roth IRA. Up to the IRS limits on Roth contributions.