Inheriting an IRA as a beneficiary can increase your financial security. But, because an inherited IRA usually imposes a 10-year distribution schedule, the account may also create larger tax implications than expected. However, exceptions to this timeline are available. Here’s how distributions work and how to prepare yourself for anticipated taxes. A financial advisor can […] The post How the 10-Year RMD Rules Work for Inherited IRAs appeared first on SmartReads by SmartAsset.
I have an inherited IRA from a 90-year-old sister who had begun distributions before her death. I don’t need or want her distributions yet. Is there a more practical way I can currently avoid the distribution taxes on these funds without adding her distributions to mine until later? I am 86 and currently taking my […] The post Ask an Advisor: Can I Avoid Taxes on an IRA I Inherited From My Sister? I Don’t Need or Want Her Distributions Yet appeared first on SmartReads by SmartAsset.
If you inherit any form of wealth, it's important to understand the tax implications as well as the best ways to lower any possible tax burdens. This is particularly true when it comes to inheriting.
The rules on inherited defined contribution plans (not just IRAs) seem like a moving target, but here’s what you need to know (as the rules stand now). In December 2019, the SECURE Act (version 1.0) flew through the House and Senate, attached to an appropriations bill. The measure, which stands for Setting Every Community Up for Retirement Enhancement, was the biggest piece of retirement legislation enacted since the Pension Protection Act of 2006. Convinced of this, I cleared my schedule to stu
Inherited IRA distribution rules have changed in ways that can significantly impact your taxes and tax strategy. Inherited IRA beneficiaries should be aware of several important tax considerations — especially considering recent rule changes and delays involving required minimum distributions (RMDs). Here are a few tax things every IRA beneficiary should know. New Legislation 1. Inherited IRA distribution rules have changed If you have inherited an IRA or have any other retirement plan account,