The Elder Law Minute: Special needs planning and retirement assets
Traditional IRAs and other retirement accounts are often comprised of funds that individuals have worked hard to build up over a significant period of time. These vehicles provide for tax deferment which means that the participants have not paid any taxes on monies initially contributed.
The assumption is that when the account holder begins to take out distributions when he reaches retirement age (70½), he will be in a lower tax bracket at such time, thereby maximizing his savings.
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