| Many may not consider the possibilities that a | | | | long time. Do remember that IRA money, |
| Roth IRA can offer an estate plan. But, there are | | | | including money in a Roth IRA, passed to heirs will |
| three advantages that a Roth IRA can offer if | | | | be included in your gross estate for federal estate |
| your estate value is under the Applicable Exclusion | | | | tax purposes. |
| Amount ($1.5 million in 2005, and $2 million in years | | | | Meet with your tax advisor and financial |
| 2006 & 2007) and if one of your planning | | | | professional to discuss your personal situation and |
| goals is to leave as much money as possible to | | | | how a Roth IRA strategy may help you to meet |
| your heirs. | | | | your goals. |
| Defining The Roth IRA | | | | 1Tax-Free Roth IRA withdrawals of earnings |
| Simply stated, the Roth IRA is an IRA that | | | | permitted five years after first contribution |
| individuals make contributions to on an after tax | | | | creating account. Once the five year requirement |
| basis (contributions to a traditional IRA may be | | | | is met, distributions will be free from federal |
| made with pre-tax money). When qualified | | | | income taxes if taken: (1) after age 59 1/2 (2) on |
| withdrawals are taken1, they are totally free | | | | account of disability or death or (3) to pay up to |
| from federal income tax (state income tax | | | | $10,000 of the expenses of purchasing a first |
| treatment may vary depending upon your state | | | | home. Withdrawals of earnings made earlier than |
| of residence). | | | | five years after the first account contribution |
| Estate Planing Benefits of a Roth IRA | | | | creating the account for purposes not |
| There are three. | | | | aforementioned, will be subject to a 10% IRS |
| 1.) Passing income tax-free money to an heir. The | | | | penalty and taxed at ordinary income tax rates. |
| estate planning benefits begin with the Roth IRA's | | | | The information contained in this document is not |
| ability to pass money to a beneficiary income | | | | intended to (and cannot) be used by anyone to |
| tax-free on qualified distributions at your death, | | | | avoid IRS penalties. This document supports the |
| provided the Roth IRA satisfies a five-year | | | | promotion and marketing of Roth IRAs. You |
| holding period. | | | | should seek advice based on your particular |
| 2.) The Roth IRA avoids forced depletion at old | | | | circumstances from an independent tax advisor. |
| age. Due to minimum distribution requirements | | | | L0201B5BK(exp1207)ENT-LD |
| (forced distributions at age 70 ½), many | | | | This article appears courtesy of Cristina Callegari. |
| traditional IRAs may be substantially depleted if | | | | Cristina is a Registered Representative offering |
| their owners live into their late 80s or beyond. | | | | securities through MetLife affiliated broker/dealers |
| Since a Roth IRA faces no such requirements, it | | | | including Metropolitan Life Insurance Company |
| can continue to benefit from tax deferral each | | | | (member NASD) or MetLife Securities, Inc. |
| year with no requirement to take distributions. | | | | (member NASD/SIPC). Insurance and annuities |
| 3.) Contributions may continue through any age. | | | | offered through Metropolitan Life Insurance |
| Provided eligibility requirements are met and that | | | | Company.[He/She] focuses on meeting the |
| you have compensation (as defined by the | | | | individual insurance and financial services needs of |
| Internal Revenue Code). | | | | people from the New York metropolitan area. You |
| With the Roth IRA, you may have the | | | | can reach Cristina at the office at Metropolis |
| opportunity to save more money for your heirs | | | | Financial Group, 1979 Marcus Avenue, Suite 234, |
| than with a traditional IRA, especially if you live a | | | | Lake Success, NY 11040, 516-326-7041. |