• IRAs have required minimum distributions (RMDs). Other assets are not forced out.

• IRAs have their own set of complex distribution rules bothduring life and after death.

• IRA distributions can incur costly penalties.

• IRAs are highly taxed upon death or withdrawal.

• IRAs receive NO step-up in basis. IRAs are subject to double tax at death (estate and income tax, plus state versions of those taxes).

• IRA investment gains are taxed as ordinary income, not at capital gain tax rates.

• IRA investment gains are not subject to the 3.8 percent net investment income surtax.

• IRAs cannot be gifted or transferred during lifetime like most other assets can. This restricts the planning opportunities for couples and families. (Exceptions: a direct gift to a charity—a qualified charitable distribution and a court ordered transfer that is part of a divorce agreement)

• IRAs cannot be transferred to trusts during lifetime or after death.

• IRAs cannot change ownership during lifetime—this would trigger an immediate and complete distribution and end the tax shelter.