Using Retirement Accounts For Funding Gifts

For many families, tax-deferred retirement accounts provide a major source of wealth to be passed to later generations.¹ Today, such accounts make up nearly one-third of total U.S. household financial wealth.² And for good reason! Tax deferral may provide an investment benefit of nearly 70 basis points per year.³ Given this advantage, taxpayers have traditionally sought to extend the tax-deferral period for as long as possible.