28 y/o, feeling stressed after transferring $7k into 2024 Roth IRA contribution

[johnserew]

@j1991 This. This is bigger than you OP. Think of your kids or future wife. They’ll appreciate you made them millionaires young if you die. Your family tree will have a head start

 

[fredg61]

@j1991 This is too good.. what if you live and want to give it to kids as inheritance after 60… does this still apply

 

[sparkielee]

@fredg61 Yes! There are no taxes owed on inherited Roth IRAs. They can even continue to grow tax free for 5 years after the original owner passes away. (The only real exception is estate tax, in some cases, which is a whole other issue but doesn’t apply to most people.)

 

[fredg61]

@sparkielee Thanks! For estate tax -is it only after certain limit you need to pay tax for inheritance?

 

[sparkielee]

@fredg61 Yep! Federal estate tax currently only applies if you pass down more than $13.61 million (or double that for a married couple).