Table: The Incredible Shrinking Ira

Here's what can happen to a large individual retirement account inherited by 
      your children (or nonspousal heirs) if you don't plan properly:
      
      IRA VALUE                    $2,312,831
      LESS: ESTATE TAX (56.2%)*     1,299,811
            INCOME TAX (27.8%)**      642,967
            EXCISE TAX (6.3%)***      145,708
      
      NET TO HEIRS                   $224,345
      TOTAL TAX HIT TO HEIRS            90.3%
      
      * Varies from 55% to 60%, depending on state, for those in top tax brackets
      ** Ranges from 25% to 30% after deduction of federal estate taxes
      *** Represents 15% of the excess accumulation in the IRA
      
      DATA: LOCKWOOD PENSION SERVICES INC.
      

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