In 2019, the SECURE Act changed the rules regarding inherited retirement accounts. Specifically, the old “stretch IRA” strategy was mostly eliminated. The new rules narrowed the withdrawal window to 10 years and it was interpreted that all the funds could be withdrawn in year 10. However, the IRS has given conflicting guidance about this and most recently indicated that required minimum distributions would apply to some beneficiaries in years 1-9.
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
Disclaimer: Since we don’t know your specific situation, none of this information should be construed as tax, legal, financial, insurance, financial advice, or other advice and may be outdated or inaccurate. It is your responsibility to verify all information yourself. This content is prepared for entertainment purposes only. If you need advice, please contact a qualified CPA, attorney, insurance agent, financial advisor, or the appropriate professional for the subject you would like help with. Ted Erhart cannot be held liable for any use or misuse of this content….(read more)
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My parents passed away in late 2020 at 88 years old. The original IRS guidance was that I had 10 years to liquidate the 401K with no required RMDs. Therefore, for tax purposes I didn't take a RMD for 2021. So now in 2022 the IRS is reversing course and adding the RMD requirement going forward. What do I do about the 2021 RMD that I didn't take because the IRS at the time said wasn't required?
It's my third month being retired now. And life hasn't been so difficult as I thought basically because I put my head down and made ways for other source of Income. I'm a huge fan of earning more money, and I think everyone should have a side hustle. Side hustling can allow you to earn that little bit of extra money that can help you achieve your financial goals faster – whether it's paying off student loans or saving for retirement.