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Your Financial Wrap-Up: 4 Savvy Money Moves to Make Before Year-End

Your Financial Wrap-Up: 4 Savvy Money Moves to Make Before Year-End

Your Financial Wrap-Up: 4 Savvy Money Moves to Make Before Year-End

Your Financial Wrap-Up: 4 Savvy Money Moves to Make Before Year-End

SECURE Act FAQs

A: No. Q: If a beneficiary has to distribute the IRA in 10 years, should the beneficiary wait until the end of the 10 years? A: It depends. For a Roth IRA, waiting until the end of the 10-year period means an opportunity for the earnings to grow tax-free for 10 years. But, for a traditional IRA, consideration must be given to how the distributions would affect the amount of income tax owed, as leaving the entire balance until the end of the 10-year period could potentially put the beneficiary in a higher tax bracket, thus increasing the amount of income tax. Therefore, for a traditional IRA a tax professional should assess the potential tax impact of spreading the amount over 10 years versus lump-sum, or in-between.

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