An inherited IRA is unique from other IRAs because of the limited time frame for taking a required minimum distribution. Watch Financial Issues Live Weekdays, 9/8c on Follow the Financial Issues Guide to Stock Buys & Sells: Download the FISM app today by searching for "FISM" or “FISM TV” in the Google Play Store or the Apple App Store. Like Financial Issues on Facebook: Follow Financial Issues on Donate today at Financial Issues Information given could be based upon time-sensitive market data or economic situations that are subject to change. © 2022 - FISM TV. All Rights Reserved....(read more)
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Inheriting an IRA can be a great financial benefit. However, it is important to know the rules regarding Required Minimum Distributions (RMDs) from inherited IRAs to avoid potential tax penalties. Here's what you need to know about handling required distributions for inherited IRAs. The first thing to keep in mind is that the rules vary depending on the relationship between the original owner and the beneficiary. If the beneficiary is the spouse of the original owner, they have the option to roll over the inherited IRA into their own IRA and delay RMDs until they reach age 72. However, if the beneficiary is not the spouse, they cannot roll over the inherited IRA and must take RMDs starting in the year after the original owner's death. When it comes to RMDs, the calculations are based on the beneficiary's life expectancy. The IRS provides a Uniform Lifetime Table that can be used to determine the RMD amount. If there are multiple beneficiaries, each person's life expectancy is taken into account, but the RMDs can still be taken from the same account. It is important to note that RMDs from inherited IRAs are subject to ordinary income tax, so it is important to plan accordingly. Failing to take the RMDs or taking less than the required amount can result in a penalty of 50% of the shortfall. There are some exceptions to the RMD rules. If the original owner died before reaching age 70 ½, the beneficiary may be able to delay RMDs until the year the original owner would have turned 70 ½. Additionally, if the beneficiary is disabled or chronically ill, they may be able to take distributions based on their life expectancy even if they are younger than 72. In conclusion, handling required distributions from inherited IRAs can be complex, but it is crucial to understand the rules to avoid costly penalties. Consult with a financial advisor or tax professional to ensure that you are adhering to the regulations and making the most of your inherited IRA. https://inflationprotection.org/handling-required-distributions-for-inherited-iras/?feed_id=75797&_unique_id=6403c4791e049 #Inflation #Retirement #GoldIRA #Wealth #Investing #analyst #annuity #biblicalinvest #biblicalinvesting #biblicallyresponsibleinvesting #business #Celia #christianinvesting #christianity #dan #democratic #economics #economy #financialissues #inhertiedira #investment #market #party #Republican #Retirement #stock #Trading #WallStreet #InheritedIRA #analyst #annuity #biblicalinvest #biblicalinvesting #biblicallyresponsibleinvesting #business #Celia #christianinvesting #christianity #dan #democratic #economics #economy #financialissues #inhertiedira #investment #market #party #Republican #Retirement #stock #Trading #WallStreet
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