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Question

How does a Roth IRA compare to a traditional IRA for legacy planning?

Answer

A traditional IRA may provide up-front tax deductions, but beneficiaries generally owe income taxes on the distributions they receive. In contrast, a Roth IRA is funded with after-tax dollars — meaning qualified withdrawals, including those made by beneficiaries, can be completely tax-free — making it a powerful tool for efficient wealth transfer.

Related FAQs

What is a durable power of attorney and why do single women especially need one?

What is the 10-year marriage rule for divorced women and Social Security?

How do I name a beneficiary if I’m not married and have no children?
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Last Updated June 26, 2026
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