Advisers Say Roth IRA’s Can Increase Bequests to Children and Charity

Tax advisers are recommending new maneuvers, many involving Roth IRA’s, that could allow taxpayers to leave more money to both their children and their favorite charities, according to The Wall Street Journal.

The lifting of income ceilings on Roths has led to a surge in conversions from traditional IRA’s. Roths are attractive to retirees because they offer tax-free withdrawals for account holders and their heirs.

The amount shifted into a Roth IRA is subject to income tax, but advisers say the tax hit can be mitigated by setting up a donor-advised fund, contributions to which are deductible.