I have $4 million in savings - will my kids get slapped with a huge tax bill when they inherit my money?

In a recent episode of Dave Ramsey's show, a Las Vegas caller with a $4 million portfolio shared insights about withdrawing from his traditional IRA to brokerage accounts. This strategy can minimize tax burdens for heirs, especially if done pre-retirement. However, it's essential to note that while beneficiaries can wait 10 years to withdraw IRA funds, waiting could lead to a significant tax bill in the final year. This withdrawal approach is not one-size-fits-all and requires careful consideration of family size and tax implications.

Moving funds from a traditional IRA to a brokerage account can minimize your heir's tax burden, particularly for those with sizable portfolios.

If you withdraw funds from your traditional IRA, you accumulate a tax bill, but it helps minimize your heir's tax burden significantly.

Your heir has 10 years to withdraw all funds from the IRA, but must do so within the last year, resulting in a large tax bill.

This withdrawal strategy is particularly worthwhile for individuals close to retirement, but isn't suitable for everyone, especially larger families.

Read at 24/7 Wall St.