Q&A: Is There Much I Can Do with My IRA in Terms of Tax Planning?

headshot of ted simpsonby Ted Simpson

Q: My largest asset is an IRA. I hear there is not much I can do with an IRA in terms of estate tax planning. Is that true?

A: Not any longer. Alaska has adopted a new law (available to all U.S. citizens) that provides for the lifetime transfer of an IRA to a trust. Thereby, you can do one of two things: 1) either transfer the IRA to an irrevocable trust—which will drastically reduce your exposure to the Oregon estate tax—and remove the appreciation of the IRA from your Federal estate tax; or 2) transfer the IRA to
an Alaska Community Property Trust, allowing you to fund the credit shelter trust with non-IRA assets. If an IRA is a major part of your estate, Ted Simpson is available to discuss your options.

Originally published in the Portland Business Journal.

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