MN-Investor
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Joined: Dec 20, 2010 22:22:44 GMT -5
Posts: 1,977
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Post by MN-Investor on Jun 24, 2024 10:17:26 GMT -5
I wonder if you could get around that by gifting, if you had some advance warning. Inherited assets get a stepped up basis. Gifted assets are stuck with a carryover basis. |
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haapai
Junior Associate
Character
Joined: Dec 20, 2010 20:40:06 GMT -5
Posts: 6,009
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Post by haapai on Jun 24, 2024 13:59:18 GMT -5
Several posts ago, I was about to post that the new tax treatment of inherited traditional IRAs and 401(k)s was a pleasant diversion from the task of figuring out the taxation of your own retirement assets.
It would appear that a whole lot of other folks are more geeked on talking about that kind of esoterica than the nuts and bolts that you are asking for.
Please don't get distracted. You have plenty to learn and some years to put it into practice. Don't second-guess or kick yourself. Don't let anyone else tell you that you were a fool for blindly shoveling money into tax deferred accounts. Automating that process probably has put you farther ahead than attempting to optimize it.
You have some time to figure out how to position yourself better for what comes next and you obviously have the discipline and the brains to do so.
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lurkyloo
Junior Associate
“Time means nothing now,” said Toad. “It is just the thing that happens between snacks.”
Joined: Jan 8, 2011 11:26:56 GMT -5
Posts: 6,164
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Post by lurkyloo on Jun 24, 2024 15:58:52 GMT -5
I wonder if you could get around that by gifting, if you had some advance warning. Inherited assets get a stepped up basis. Gifted assets are stuck with a carryover basis. True and something to consider. I just find it sufficiently obnoxious that I’d probably prefer to pay capital gains on some rather than 10% estate tax on anything that doesn’t go to a sibling or my direct descendant. Especially considering the friend I had in mind is likely in the 0% capital gains bracket, so if I gifted appreciated assets she’d likely still come out ahead. I don’t think there is any exemption for the first X amount; if I wanted to leave her 100K she’d be paying 10K of it right back to MD  Just checked: yep, confident of 0% bracket. |
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MN-Investor
Well-Known Member
Joined: Dec 20, 2010 22:22:44 GMT -5
Posts: 1,977
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Post by MN-Investor on Jun 24, 2024 16:12:58 GMT -5
At times I'm tempted to just take my whole huge tIRA out in one year, pay the zillion dollars in taxes, and know that my heirs - who expect nothing from me - will just get clean, stepped-up basis stocks and bonds funds. And they won't have to deal with inherited IRA rules.
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