Hi Andi, Big Al and Joe! Big fan of your podcast! I am hoping that you might be able to help brainstorm some ideas for my family. One of my stepsisters passed away a few years ago, and she left her IRA valued at 160k to my other stepsister's son. When she first set up her account, she only had one nephew. The family grew, and she ended up having another niece and nephew prior to her passing. My sister knows that she would have wanted to leave equal shares of the IRA to all three of the children. She passed away prior to the change that requires withdrawal in 10 years, so they are able to leave the money in until RMD age, which will be 2039. The kids ages are 24, 21, and 15. The oldest son is going to college for the next couple of years and working part-time. We are trying to figure out how to split the money between the kids. Since he isn't making much money now, would it be better to pull it out now and set up accounts for the other kids? I'm not certain if he could just pull out their shares and leaves his in? The other issue is, not wanting to hand over such a large sum of money to young people that might not know how to manage it and the tax implications on a trust fund don't seem like a great option. Could it be better to leave the money in the IRA until RMD age and then have him gift the money to the other two siblings every year? That would most likely be prime earning years, so the taxes might not be as favorable. Is it possible to put the IRA into a trust that their mom manages? Everyone is at a loss about how to handle the situation, hoping you have some ideas! I appreciate you taking the time to read this and for your spitball! I live in Irvine, enjoy a good Moscow mule and drive a 2015 Maserati Ghibli:) -- Heather, Irvine CA Listen to the entire Your Money, Your Wealth® podcast: Download the Estate Plan Organizer: Pure Financial Advisors, LLC is a fee-only Registered Investment Advisor providing comprehensive retirement planning services and tax-optimized investment management to thousands of people across the nation. Schedule a free assessment with any one of our experienced financial professionals: Office locations: Ask Joe & Big Al On Air: Subscribe to our YouTube channel: Subscribe to the Your Money, Your Wealth® podcast: IMPORTANT DISCLOSURES: • Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC, a Registered Investment Advisor. • Pure Financial Advisors LLC does not offer tax or legal advice. Consult with your tax advisor or attorney regarding specific situations. • Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. • Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. • All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. • Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors. CFP® - The CERTIFIED FINANCIAL PLANNER™ certification is by the Certified Financial Planner Board of Standards, Inc. To attain the right to use the CFP® designation, an individual must satisfactorily fulfill education, experience and ethics requirements as well as pass a comprehensive exam. Thirty hours of continuing education is required every two years to maintain the designation. CPA – Certified Public Accountant is a license set by the American Institute of Certified Public Accountants and administered by the National Association of State Boards of Accountancy. Eligibility to sit for the Uniform CPA Exam is determined by individual State Boards of Accountancy. Typically, the requirement is a U.S. bachelor’s degree which includes a minimum number of qualifying credit hours in accounting and business administration with an additional one-year study. All CPA candidates must pass the Uniform CPA Examination to qualify for a CPA certificate and license (i.e., permit to practice) to practice public accounting. CPAs are required to take continuing education courses to renew their license, and most states require CPAs to complete an ethics course during every renewal period....(read more)
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Inherited Stretch IRA Strategies | YMYW Podcast Inheriting an Individual retirement account (IRA) can be a significant financial gain for the recipient. However, it’s essential to follow the rules and regulations when it comes to utilizing an Inherited Stretch IRA, which involves withdrawing the minimum required amount annually. The Your Money, Your Wealth Podcast explores various Inherited Stretch IRA strategies that recipients can use to maximize their financial situations. One approach discussed on the podcast is the ‘Five-Year Rule’ option that allows the recipient to delay any required distributions until the fifth year after inheriting the account. This option allows the IRA’s investments to grow for five years with zero taxes, after which the funds need to be withdrawn entirely. Another popular way of maximizing an Inherited Stretch IRA is to utilize a ‘Spousal Inherited Stretch IRA’ option. This option allows the spouse who inherits the IRA to roll it into a new IRA account in their name. As such, the spouse becomes the new owner who can stretch the distributions over time as long as they’re below the minimum annual threshold, thus reducing their tax burden. The ‘Multi-Generational IRA’ is another Inherited Stretch IRA strategy discussed on the podcast for those interested in providing financial support to their future generations. This option involves creating a trust that designates the IRA’s successor with the authority to distribute funds to multiple generations of beneficiaries. The trust’s terms will often state the minimum and maximum distribution amounts, and penalties for beneficiaries who fail to follow the stipulated protocols. In conclusion, Inherited Stretch IRA strategies offer recipients a range of opportunities to maximize their financial gains from the account. It’s vital to consult with a financial advisor with experience in inherited IRA’s and tax planning when considering any of these approaches. Additionally, listeners are encouraged to tune in to the Your Money, Your Wealth Podcast for more in-depth discussions on inheritance strategies and financial planning tips. https://inflationprotection.org/inherited-stretch-ira-strategies-ymyw-podcast/?feed_id=76077&_unique_id=6405167507114 #Inflation #Retirement #GoldIRA #Wealth #Investing #CertifiedFinancialPlanner #certifiedpublicaccountant #CFP #cpa #feeonly #Fiduciary #FinancialPlanning #financialpodcast #inheritedira #inheritedirarmd #peerfinancial #portfoliomanagement #pureadvisors #purefin #purefinacial #purefinance #purefinancial #purefinancialadvisers #purefinancialadvisors #purefinancial #retirementplanning #retirementpodcast #savingforretirement #secureact #stretchira #YMYW #YourMoneyYourWealth #yourmoneyyourwealth #InheritedIRA #CertifiedFinancialPlanner #certifiedpublicaccountant #CFP #cpa #feeonly #Fiduciary #FinancialPlanning #financialpodcast #inheritedira #inheritedirarmd #peerfinancial #portfoliomanagement #pureadvisors #purefin #purefinacial #purefinance #purefinancial #purefinancialadvisers #purefinancialadvisors #purefinancial #retirementplanning #retirementpodcast #savingforretirement #secureact #stretchira #YMYW #YourMoneyYourWealth #yourmoneyyourwealth
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