Don't make a mistake with your inherited IRA

It's important to understand the rules around inheriting an IRA - here's some quick tips. Want to discuss further? Book a consultation with our team: Check the background of your financial professional on FINRA's BrokerCheck. [i] The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named representative, broker - dealer, state - or SEC - registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. We take protecting your data and privacy very seriously. As of January 1, 2020 the California Consumer Privacy Act (CCPA) [ii] suggests the following link as an extra measure to safeguard your data: Do not sell my personal information. [iii] Copyright © 2022 FMG Suite Secura Financial, based in Orange County, California, is committed to supplying our clients with the knowledge they need to make informed investment decisions. Please look here [iv] for our complete disclosures. The information in this section will be updated from time to time. Securities offered through Crown Capital Securities, L.P. (CCS) Member FINRA/SIPC. [v] Investment advice offered through Secura Financial, LLC or Crown Capital Securities, L.P. (CCS). Secura Financial Planning & Wealth Management and CCS are unaffiliated entities. [i] brokercheck.finra.org [ii] caprivacy.org [iii] securawm.com/donotsellmypersonalinformation [iv] crowncapitalsecurities.com/disclosures [v] finra.org...(read more)

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Inheriting an IRA from a loved one can be a bittersweet experience. While it's an honor to have someone entrust their savings to you, managing an inherited IRA can be complicated if you're not familiar with the rules and regulations of the process. One mistake could mean hefty penalties and taxes, which could significantly reduce your inheritance. Therefore, it is essential to be aware of some simple but fundamental rules that will help you avoid making mistakes with your inherited IRA. Firstly, it's crucial to remember that inherited IRAs have different rules than traditional IRAs or Roth IRAs that you may already have. The primary difference is that you cannot contribute to an inherited IRA, and you must take required minimum distributions (RMDs) every year from the account. RMDs are the minimum amount you must withdraw from your inherited IRA each year, starting the year after the original account owner's death. Secondly, the requirements regarding RMDs depend on who the original account owner was and the age they were when they passed away. For instance, if the account owner was under 70½ years of age at the time of death, you could choose to take distributions over ten years or more. However, if the owner was 70½ or older, you must take RMDs based on the original account owner's life expectancy. The third important rule is to understand the tax implications of your inherited IRA. Withdrawals from traditional IRAs are generally taxed as ordinary income. Therefore, if you're taking distributions from an inherited traditional IRA, you'll pay taxes on the amount withdrawn each year. Roth IRA withdrawals, on the other hand, are tax-free as long as the account owner had the account for at least five years before their death. Finally, it's important to name a beneficiary for your inherited IRA. By default, the IRA custodian will name the original account owner's estate as the beneficiary if no designated beneficiary is named, and that could mean your inherited IRA will be subject to probate court. This could result in high costs and delayed distributions of your inherited IRA assets. In conclusion, managing an inherited IRA requires careful consideration and attention to detail. By understanding the basic rules surrounding your inherited IRA, you can minimize your tax liability and maximize your inheritance. For more information, speak to a financial advisor or tax professional who can guide you through the process and ensure that you don't make a mistake with your inherited IRA. https://inflationprotection.org/dont-make-a-mistake-with-your-inherited-ira/?feed_id=77183&_unique_id=640c5930bc3ae #Inflation #Retirement #GoldIRA #Wealth #Investing #estateplanning #inheritedira #inhertiance #ira #wealthmanagement #InheritedIRA #estateplanning #inheritedira #inhertiance #ira #wealthmanagement