Category Archives: Inherited IRA
The Stretch IRA Is Diminished but Not Completely Gone
Before the SECURE Act, named beneficiaries who inherited an IRA were able to take distributions over the course of their lifetimes. This allowed the IRA to grow over many years, sometimes decades. This option came to an end in 2019 for most heirs, but not for all, says the recent article “Who is Still… Read More »
What If a Sole Beneficiary Wants to Share?
That doesn’t sound like a bad idea, right? However, Morningstar’s recent article entitled “3 Strategies to Consider When Sole Beneficiaries Want to Share the Wealth” says that there are a few hurdles to clear, such as the IRA administrator’s policies, income tax consequences, transfer tax consequences and the terms of the decedent’s will. Here’s… Read More »
Do I Have to Accept an Inheritance?
If you do not want to accept an inheritance, you have to disclaim. For most, this is not often done because they are not able to disclaim an item in the hopes that they can chose a comparable item. More importantly, they cannot direct or decide who gets their disclaimed asset. MarketWatch’s recent article… Read More »
Do I Qualify as an Eligible Designated Beneficiary under the SECURE Act?
An eligible designated beneficiary (EDB) is a person included in a unique classification of retirement account beneficiaries. A person may be classified as an EDB, if they are classified as fitting into one of five categories of individuals identified in the Setting Every Community Up for Retirement Enhancement (SECURE) Act. The bill passed in… Read More »
Inherited IRAs Require Careful Handling
For those who inherit IRAs, the intersection of taxes, estate law and financial planning can be a tricky place. There are many choices, maybe too many, and making the wrong choice can be costly, according to the recent article “6 inherited IRA rules all beneficiaries must know” from Bankrate. There are two categories of… Read More »
Coronavirus Makes Estate and Tax Planning an Urgent Task
The Covid-19 pandemic has brought estate planning front and center to many people who would otherwise dismiss it as something they would get to at some point in the future, says the article “Estate and Life Insurance Considerations During the Covid-19 Pandemic” from Bloomberg Tax. Many don’t have a frame of reference to address… Read More »
Five Top Reasons to Add Beneficiaries to Investment Accounts
One way to show loved ones that you care is by having an estate plan and communicating your wishes to them clearly, notes the article “Why You Should Add Beneficiaries to Your Investment Accounts Now” from The Street. That includes adding beneficiaries to your retirement and investment accounts. This simple step will help save… Read More »
Are You Making the Most of the SECURE and CARES Acts?
The SECURE Act made a number of changes to IRAs, effective January 1, 2020. It was followed by the CARES Act, effective March 27, 2020, which brought even more changes. A recent article from the Milwaukee Business Journal, titled “IRA planning tips for changes associated with the SECURE and CARES acts, ” explains what… Read More »
Tapping an Inherited IRA?
Many people are looking at their inherited IRAs this year, when COVID-19 has decimated the economy. The rules about when and how you can tap the money you inherited changed with the passage of the SECURE Act at the end of December 2019. It then they changed again with the passage of the CARES… Read More »
Massive Changes to RMDs from Stimulus Plan
Several of the provisions that were signed into law in the relief bill can taken advantage of immediately, reports Financial Planning in the article “Major changes in RMDs and retirement contributions in $2T stimulus plan.” Here are some highlights. Extended deadline for 2019 IRA contributions. With the tax return filing date extended to July… Read More »