When beneficiaries are adult children receiving assets from their parents, this could end up leading to RMDs taking place during the children’s peak earnings years, which could push up the marginal tax rate paid on the inheritance. For retirees thinking ahead about bequeathing assets, the tax bracket management problem for paying taxes at the lowest rates includes comparing tax rates for the retiree against tax rates for the potential beneficiary. Roth conversions by the retirees may allow for the taxes to be paid at a lower rate. Beneficiaries would then receive Roth assets instead, and
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