Sentences with phrase «beneficiary is in a lower tax bracket»

So, for example, if you take the same scenario described above but assume the beneficiary is in a lower tax bracket — say, 15 % for the beneficiary vs. 28 % for the account owner — the traditional IRA plus taxable account comes out slightly ahead of the Roth, albeit the margin is small, about 1 %, or $ 344,000 vs. $ 340,000.

Not exact matches

So if you have retirement funds you'd like to pass along to heirs but aren't sure whether to do so in a traditional IRA or convert the funds to a Roth, run the numbers before making your decision, especially if you believe there's a chance your beneficiary may be in a lower tax bracket than you when you convert.

There are some plans that allow the beneficiary — usually someone in a lower tax bracket — to withdraw the funds.