Reducing Inherited IRA Taxes

Since the 2019 law change, if you inherit an IRA from someone who is not your spouse, you have 10 years to withdraw the funds. But most IRAs are comprised of pre-tax dollars. This means that when you take a withdrawal, you generally have to pay taxes. Especially for those who have the ability to control their income, good planning can result in paying a much lower tax rate. My professional focus is retirement planning for individuals over age 55. Please visit our website or reach out for a complimentary planning session. Ted Erhart, CFP® Financial Planner Anoka, Minnesota www.norrislakeretirement.com ...(read more)

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Inheriting an IRA can come with a significant tax burden that can take a substantial chunk of your inheritance. However, there are several ways in which you can minimize these taxes and maximize the amount you receive from your inherited IRA. 1. Stretch-out distributions One of the most effective ways to minimize taxes on your inherited IRA is to stretch-out distributions. This means that instead of taking the lump sum, you can choose to take minimum distributions over your lifetime. By doing this, you will not only reduce the amount of taxes you pay annually, but also give the inherited IRA time to grow. 2. Divide the inherited IRA If you are an heir to an inherited IRA with multiple beneficiaries, you can choose to split the inherited IRA into separate accounts. This can give you the freedom to take distributions at different times and in different amounts, depending on your individual circumstances. 3. Choose the right beneficiary Choosing the right beneficiary can also help minimize taxes on your inherited IRA. For example, if you are a spouse of the original IRA owner, you can roll over the inherited IRA into your own IRA. This will not only allow you to defer taxes until you reach the age of required minimum distributions (RMDs), but also enable you to name your own beneficiaries. 4. Direct trustee-to-trustee transfer When transferring an inherited IRA, ensure that you do it as a direct trustee-to-trustee transfer. This method will allow you to avoid taxes on the amount transferred and ensure that the funds are deposited directly into your new inherited IRA. 5. Consider Roth IRA Lastly, you may want to consider converting your inherited IRA into a Roth IRA. Though it may require you to pay taxes upfront, it can significantly reduce taxes in the long run. This is because Roth IRA distributions are tax-free, and you are not required to take RMDs, allowing the funds to grow tax-free. In conclusion, minimizing taxes on your inherited IRA can be accomplished by choosing the right beneficiary, splitting the account, stretching-out distributions, using direct trustee-to-trustee transfer, and converting to Roth IRA. With careful planning and strategic decisions, you can keep more of your inherited IRA and secure a comfortable future for yourself and your loved ones. https://inflationprotection.org/reducing-inherited-ira-taxes/?feed_id=106891&_unique_id=648725d73b570 #Inflation #Retirement #GoldIRA #Wealth #Investing #inheritedira #InheritedIRAs #InheritedIRA #inheritedira #InheritedIRAs

"Is Birch Gold Group a Reliable Choice for Your 2023 Gold IRA Investments?" - A Quick Review #shorts

In this Birch Gold Group review video, I go over what makes this Gold IRA company unique, the pros and cons, their fees, minimums, and much more. Get their free guide here: 👉 FREE Resources: ➜ Gold IRA Company Reviews: Birch Gold Group boasts high ratings from consumer advocate groups. With an A-plus rating from the Better Business Bureau, a triple-A rating from the Business Consumer Alliance, and high marks from Trust Link, Trustpilot, and Google Business, Birch Gold is a top choice to trust your hard-earned retirement savings. Birch Gold Group’s low initial investment minimum is another edge it has over its competitors whose minimums can range from $25,000 to $50,000. A beginning $10,000 minimum investment is all that is required to start a GOLD IRA with Birch which is advantageous for first-time investors. Spanning nearly two decades, Birch Gold Group’s mission and philosophy focus on a commitment to understanding your needs and finding the right fit for you. Their

New York Times Company Continues to Add Online Subscribers at a Steady Clip

Business News by Timothy Sumer - The company’s first quarter results showed total paid subscriptions reaching 4.5 million. Online ad revenue rose 19 percent, to $55 million, thanks, in part, to “The Daily” podcast. from NYT > Business https://nyti.ms/304QC2w via Timothy Sumer

Should I Rollover My 401k to an IRA? YES! #shorts #retirement #financialfreedom

Should I Rollover My 401k to an IRA? YES! #shorts #retirement #financialfreedom Should I Rollover My 401k to anIRA 🤔 || 401k to IRA Rollover Pro's & Con's In this video, I want to talk about rolling over your 401k to an IRA Rollover and if that makes sense for your retirement planning . I want to look at the pro's to rolling over a 401k and also the con's to rolling over a 401k. When you should rollover your 401k to an IRA and when you should NOT rollover your 401k to an IRA. Let's talk about when you should NOT rollover your 401k to an IRA: 1. You are still working and are under the age of 59.5 2. You are 55 and considering retirement (Rule 55) 3. Increased creditor protection in a 401k 4. 401k's offer loans--IRA's do not offer loans Why you SHOULD rollover your 401k to an IRA 1. More investment choices in IRA over 401k 2. Lower investment fees 3. Convert IRA to Roth IRA (Roth IRA Conversion) 4. Consolidation from multiple 401k'

Timothy Sumer

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