4. Maximize that pre-70 1Ž/2 IRA distribution. If you plan to take an IRA distribution but don’t need the money for living expenses, considering depositing that amount into a Roth IRA. As you probably know, Roth IRAs offer permanent "tax freedom." Earnings and appreciation on assets housed in a Roth IRA are forever free from tax, as are distributions from a Roth IRA. What’s more, unlike traditional IRAs, Roth IRAs are not subject to minimum distribution requirements. That means you can allow the account to grow tax-free for life. This makes the Roth a very effective estate-planning tool.