BMS wrote:

- quote -

The Roth IRA would appear to always impact estate tax
calculations, though there was one commentator who, for a
while, had a theory about how the right to the Roth could be
moved out of the estate--though the IRS didn't agree.

Generally, unless no beneficiary is designated or the
person's estate is designed as the beneficiary of the Roth
IRA, it wouldn't impact probate issues in most states.
That's because the Roth IRA generally passes by beneficiary
designation and not through the probate mechanism.

Life insurance is a more interesting issue--depending on how
the policy is owned and the rights retained or not retained
by the insured, it may or may not be included in the estate.
For *probate* the issue is basically the same as the Roth
IRA--if it passes to a designated beneficiary who is not the
estate, it would pass outside probate.

--
Ed Zollars, CPA
Phoenix, Arizona

Exactly what I said........
Cal Lester CLU



BMS wrote:
- quote -

--
Backup not found: (A)bort (R)etry (P)anic

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Written by jeroen[at]vanbaarsel.net

Aren't those distributions just income tax free, however they get tossed
into the calculations for estate tax and probate?

"cal-lester" <cal-lester[at]comcast.net> wrote in message
news:1_oxb.325968$Fm2.334807[at]attbi_s04...
- quote -

HW "Skip" Weldon wrote:

- quote -

Currently, so long as you don't foul up either to make them
taxable (cash out the entire life insurance policy or take
premature Roth withdrawals), neither has an impact on any
other tax matter at this time.

Now, of course, a future Congress could change just about
*anything* though changing either of these would create some
real problems for many Congress-critters. Of the two, I
suspect it would be easier to go after the life insurance,
but neither would go down without a major fight--and, in
either case, I would expect Congress to "grandfather"
already existing accounts/policies in some form to try and
deflect some of the heat.

--
Ed Zollars, CPA
Phoenix, Arizona

HW "Skip" Weldon wrote:
- quote -


I can not speak from memory about Roth, but I can assure you,
that WITHDRAWALS from a Life Policy ar NOT (currently at least)
Income Taxable at all........
Cal Lester CLU




- quote -

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On Thu, 27 Nov 2003 08:21:08 CST, "BMS" <mcfared[at]comcast.net> wrote:


- quote -

Does Roth IRA withdrawals have any impact on anything else like SS,
deduction phaseouts, etc.? How about "tax-free" withdrawals from a
life policy?

-HW "Skip" Weldon
Columbia, SC

That's a reason that I've told clients to plan for taxes, but not obsess
about them. Many would let the tax tail wag the dog.

I mean Congress will never enact means testing for social security but
instead opt for making the benefits taxable to people with other income
streams. In other words, given the graduated income tax structure it will
taxed as the last dollar earned.

"HW "Skip" Weldon" <skip5700removethis[at]hotmail.com> wrote in message
news:9kmbsv0fvl4gchv3ku52e3fvskqur77igs[at]4ax.com...
- quote -

I am wary of making long-range plans based on the tax code. Reason:
Some things that were originally income tax-free that changed over
time.

For example, Social Security has gradually become more taxable.
Municipal bonds now are figured into Social Security for tax purposes.
As income rises beyond a certain point, we lose the value of
deductions.

I suspect there are several others. If you know of one or more,
please list them below.

-HW "Skip" Weldon
Columbia, SC