The document discusses opportunities and pitfalls for inheriting IRAs, 401(k)s, and Roth IRAs. It outlines various tax benefits such as tax-deferred growth, tax-free distributions from Roth accounts, and strategies for delaying required minimum distributions. However, it also notes pitfalls like tax penalties for failing to take proper actions by certain deadlines or updating beneficiary forms. The document emphasizes the importance of estate planning for retirement accounts and maximizing benefits available to beneficiaries like stretching distributions over a lifetime.

9. Roth-IRA vs IRA? Traditional IRA Roth IRA Contributions Tax Deductible No Tax Deduction Contributions after Age 70 ½ If still working No Yes Withdrawals Before Age 59 ½ Taxable plus 10% penalty Contributions Tax-free No penalty Earnings Taxable plus 10% penalty Withdrawals After Age 59 ½ Taxable Contributions Tax-free No penalty Earnings Tax-free* No penalty *Meets 5 year rule Subject to age 70 ½ RMD Yes No

30. IRA, 401(k) & Roth IRA for participants & their beneficiaries Take advantage of the Opportunities and avoid the pitfalls