Skip to main content

Posts

Showing posts with the label whattodowithaninheritedIRA

What To Do When You Inherit An IRA

Forbes Best-In-State Wealth Advisor, Cary Stamp, CFP®, discusses the best way to tax-efficiently use the assets in an IRA that you have inherited. TRANSCRIPT: Hi, I'm Certified Financial Planner Cary Stamp, and today I'd like to talk about the topic of IRAs, specifically what happens when somebody has an IRA, they pass away, and they name YOU as the beneficiary of the IRA. You have several choices. Number one, you can take the cash. If it's a bank or a financial institution or a brokerage firm, you can call them up and say, hey, cut me a check, send me the person's IRA money. If it's in a traditional IRA, you will pay a bucket load of taxes on that distribution because every dollar that you're going to take out of that account is going to be taxable in the year in which you withdraw it. There's another way to do this and most custodians of IRAs don't even know how to explain this to most beneficiaries. And that's to use what we call an i...