That is because Uncle Sam stands first in line to inherit 30 to 90 percent of your hard-earned funds. However, your advisor can demonstrate how selecting both primary and contingent beneficiaries for your IRA can grant you the flexibility to leave a tax-deferred financial legacy to your heirs.
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Multi-Generational Planning Check List
Creating a multi-generational (MGIRA) or "stretch" IRA can result in substantial distributions being made over the life expectancies of the owner, the owner's spouse, and their children.

Putting together a successful multi-generational IRA takes careful planning, as there are plenty of traps and pitfalls for the unwary. As Forbes magazine put it : "The rules covering inherited IRAs are the most complex that ordinary taxpayers ever encounter; even the IRS hasn't filled in all the gaps."

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My Rollover/Lump-sum Decision Analysis
You have some crucial decisions to make about how you take distribution of your hard-earned savings. Not understanding rollover regulations can lead to unintended tax consequences that chip away at retirement savings.

The funds held in your retirement accounts are called “qualified savings,” since they qualify for special tax-deferred status by the Federal Government. If you decide to withdraw all the money at once from those accounts, it is called a “lump-sum distribution.”

Your America’s IRA Centers advisor will explain the tax consequences of taking a lump sum distribution. You may want to roll those funds into an IRA and to take advantage of continued tax deferral.
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Roth IRA & Roth Conversion Analysis
Roth and traditional IRAs have the same objective; both provide an incentive to save, and both provide income after retirement. Their primary difference is that the funds in a traditional IRA grow tax-infested, while the funds in a Roth IRA grow tax-free. That is, contributions you make to a traditional IRA are taxed upon withdrawal (generally, after age 59 ½). Roth IRA funds are only taxable at the time of contribution. Thereafter, Roth interest and capital gains are distributed tax-free.

One popular rationale for a traditional IRA is that retired people may be in a lower tax bracket, and would therefore pay less tax on withdrawals of IRA funds going out than they would tax on Roth contributions going in. At America’s IRA Centers™, we regard this as a myth. Because of pension income, Social Security payments, and/or investment income, many Americans find themselves in an equal or higher bracket after they leave their jobs. Also, keep in mind that present income tax rates are historically low—only the 1930s saw a lower individual tax rate than we’re experiencing today. A Roth conversion may allow you to lock in today’s low tax rates and provide tax free income in retirement and a tax free legacy to your family.

Many factors go into evaluating whether a Roth conversion is the right choice for you. America’s IRA Center Retirement distribution expert will contact you to provide you with a complimentary Roth Conversion analysis.
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Required Minimum Distributions Calculations
Congress created traditional IRAs to help promote saving, but it never intended for Americans to defer taxes forever. That is why the tax code requires that when IRA account owners reach age 70 1/2, they must begin drawing down their accounts and paying tax on the distributions. Those withdrawals are called Required Minimum Distributions (RMDs).

Failure to take RMDs on time (called a Required Beginning Date) can trigger stiff penalties including an additional 50 percent tax penalty of on distributions you were supposed to take, but didn’t.

Your America’s IRA Center advisor can assist you with the calculation of your RMDs and explore your options to maximize the value of your retirement dollars.
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Charities and Beneficiaries
While most people will be passing their unused retirement savings to their families, many people have some philanthropic goals as well. If one of your ultimate goals is to leave some portion of your estate to a charity, a traditional IRA is a great source to use for this because you will be passing before tax money to a non-taxable entity, thereby allowing it to flow completely tax free, and allowing you to leave a greater amount to the charity of your choice.

However, beware that if you do have charitable intentions in addition to your family legacy planning, naming a charity and a designated beneficiary on the same IRA account will preclude the designated beneficiary from being able to stretch the distributions over his or her life expectancy. This disastrous result can be avoided through the establishment of a separate IRA to pass the portion of your retirement savings on to the charity while still preserving the options for your designated beneficiaries.
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