Finally, Some Clarity on Inherited IRAs

No images? Click here   By Elizabeth O'Brien | July 28, 2024 Last week, the IRS released long-awaited rules on inherited retirement accounts. The result was predictably complicated. The big takeaway is that most nonspouses who inherit IRAs from someone who had begun taking required minimum distributions must continue to take RMDs on an annual schedule. In the words of IRA expert Ed Slott, once the RMD tap starts flowing, you can’t turn it off. The new rule applies to those who inherit traditional IRAs and 401(k)s after 2019. Previously, adult children and other heirs could stretch their distributions over their own lifetimes, allowing for more growth in the account. But Congress thought this was too big of a tax break, so it killed the “stretch IRA” for most heirs and accelerated the withdrawal timeline to just 10 years after the original account holder’s death for most nonspouses. It’s a headache for sure, but since penalties for non-compliance kick in next year, it’s important to understand if you’re subject to the new rules. Learn more in today’s edition. You Inherited an IRA. Here's How to Avoid a Big Tax Bill.   CONTENT FROM JACKSON Clarity you deserve A retirement planning partner you can trust. Jackson® is committed to helping clarify the complexity of retirement planning. Learn more at Jackson.com. Learn More     Annuities Are Offering Bigger Payouts. Here Are the 100 Best. Annuities can be overwhelming. Barron's has done the legwork for you. How to Stop Cognitive Decline from Wreaking Havoc on Family Finances Don't put off having uncomfortable conversations. 4 Tips to Slash Your Tax Bill in Retirement Spend down taxable accounts first, a CPA advises. Inflation May Erode Your 60/40 Portfolio Some are advocating an allocation to commodities over bonds. Kids With Special Needs Deserve Benefits. A Trust Can Protect Them. Special needs trusts can preserve eligibility for government benefits.   More Barron's Retirement Coverage       The No. 1 Enemy of Your 401(k) Plan Could Be You  (MarketWatch)  These Are the Oldest Olympians Competing in Paris  (NBC)   *** Stay on top of the tech trade with a daily rundown of top-performing tech stocks and the big names making news. Sign up for the Tech Report newsletter by Investor's Business Daily here.      Social Security   Medicare   Required Minimum Distribution calculator   Getting Ready to Retire? Here's a Planning Guide for the 5 Years Before Your Last Day.   Finra's Guide to Social Isolation and the Risk of Investment Fraud   The SEC's Guide to Identity Theft, Data Breaches, and Your Investment Accounts           This mailing was sent to aymentanaze.news@blogger.com,  because you signed up to be a Barron's newsletter subscriber. Manage Email Preferences | Privacy Notice | Cookie Notice | Contact Us Barron's | 1211 Avenue of the Americas | New York, NY 10036 ©2024 Dow Jones & Company, Inc. All Rights Reserved .         Unsubscribe