What is the single biggest mistake made with IRAs?

The IRA beneficiary form, or more frankly, the lack of one. Far too often this beneficiary form is done as an afterthought. This may have big consequences.

  • It will determine whether your family will be able to stretch the IRA over their lifetime, substantially reducing taxation.
  • It will determine who receives the IRA funds, and whether the distribution is per capita or per stirpes.
  • It will determine whether or not there is a bloodline distribution.

All too often, I meet with families to determine who will be on the beneficiary form, only to hear “the bank has it.”

This is a NO-NO and has caused many families an unnecessary amount of pain.

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