Retirement Plan Trust

Protect Your IRA, 401k, or other Retirement Savings for Multiple Generations.

Your IRA is the biggest wealth opportunity for your family and you may not even know it. 

What we do know:

• The greatest strength of an IRA is tax-deferred growth;
• You can start taking voluntary IRA distributions at age 59½ without a penalty;
• You must take required minimum distributions (“RMDs”) at age 70½;
• As of January 1, 2003 the IRS applied new rules for inherited IRAs allowing your beneficiaries to stretch out RMDs over the course of their lives.

These new stretch out rules can turn a very modest IRA into a multi-million dollar account over the course of generations.

Accumulate Legacy Wealth

Stretch-Out Benefits

• Maximizes stretch out by making it automatic
• Allows beneficiaries to stretch out RMDs over course of their individual lifetimes, and grandchildren’s lifetimes (even if grandchildren do not yet exist)
• Allows beneficiary to hold RMDs in a trust tax-free

Protection Benefits
After the surviving spouse passes, the trust becomes the owner of the IRA account. Because the beneficiaries do not own it, they cannot give up their share in divorce or lawsuit negotiations.

Tax Benefits
Once the IRA money is owned by the trust it only become taxable as a beneficiary withdraws RMDs.  It is not included in the estate of your children, and is thus not subject to estate taxes when it is passed to your grandchildren.

Accumulation Mode
The RPT also gives a beneficiary the right to withhold RMDs in the trust in order to fully maximize the tax-deferred benefit of an IRA.

401k
Corporate rules override IRA Stretchout rules and most 401ks must be liquidated within 1-5 years after the owner’s death—thus blowing any chance of a stretchout. If the RPT was the beneficiary of the 401k, the stretchout, with protection, could still occur.

A Retirement Plan Trust is a must for anyone with an IRA or 401k.