b"Financial FocusHelp Protect Your Familys Inheritance Y ou might contribute to your IRA for decades to helpthe IRA within 10 years of the IRA owners death. Thewant to consult your tax professional in addition to your pay for your retirement. But if you dont need allbeneficiary generally does not have to take out any moneyfinancial advisor, to determine if this strategy can help you the money, you may want to leave whats left to yourduring that 10-year period, but at the end of it, the entireachieve your legacy goals.children or grandchildren. However, if you want to ensurebalance must be withdrawnand that could result in a they get the most from this inheritance, youll need to dopretty big tax bill. Another option is to purchase life insurance, which can some planning. provide a specific dollar amount to your heirs or be used The stretch IRA strategy can still be used for survivingto help cover additional taxes. This may be especially Heres a little background: Up until a couple of yearsspouses, beneficiaries who are no more than 10 yearsadvantageous if you are 72 or older, in good health, and ago, when you left the proceeds of your IRA to youryounger than the deceased IRA owner, and beneficiariestaking withdrawalstechnically called required minimum beneficiaries, they could choose to stretch requiredwho are chronically ill or disabled. Minor children of thedistributionsfrom your retirement accounts, such as withdrawals over a long period, based on their lifeoriginal account owner are also eligible for a stretch IRA your traditional IRA and your 401(k). If you dont really expectancies. These required withdrawals were generallybut only until they reach the age of majority, at which timeneed the money, you can use these withdrawals to pay taxable, so this stretch IRA allowed your beneficiaries tothe 10-year rule applies.for some or all of the insurance premiums. Life insurance greatly reduce the annual taxes due, while benefiting fromcant replace an IRA as a means to save for retirement, longer tax-deferred growth potential. And the younger So, if you want to leave your IRA to family members whothough, so you should consult with your financial advisor the beneficiary, the longer the life expectancy and thedont meet any of the above exceptions, what can you do?to make sure you are working toward all your goals. lower the withdrawals, so this technique would havebeen especially valuable for your grandchildren or evenOne possibility is a Roth IRA conversion. You could In any case, if you have a sizable IRA or you dont great-grandchildren. convert a traditional IRA to a Roth IRA over your lifetime,need the funds that youre required to take from your so your heirs would receive the Roth IRA. They would stillretirement accounts, you may want to start thinking about Changes in laws affecting retirement accounts havebe required to withdraw the assets within 10 years, butwhat you want to do with the money. The more thorough significantly limited the stretch IRA strategy. Now, mostunlike with a traditional IRA, Roth IRA withdrawals areyour legacy planning, the better your chances of meeting non-spouse beneficiaries must withdraw all assets fromgenerally tax-free. These conversions are taxable, so you'llyour legacy goals. This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC. Edward Jones is a licensed insurance producer in all states and Washington, D.C., through Edward D. Jones & Co., L.P. and in California, New Mexico and Massachusetts through Edward Jones Insurance Agency of California, L.L.C.; Edward Jones Insurance Agency of New Mexico, L.L.C.; and Edward Jones Insurance Agency of Massachusetts, L.L.C.California Insurance License OC24309.Sam Buchertedwardjones.comMember SIPCFinancial Advisor581 W Wickenburg Way Suite A Wickenburg, AZ 85390 IRT-4395F-A 928-684-707232 May 2021"