Join Matt and Leon to review 2023 annuity results and get a jump on what’s ahead this year, with a round table discussion of what to expect in the market. We’ll focus on inherited IRA updates and answer questions from webinar attendees.

We’ll also review Roth IRA conversions and discuss how EquiTrust can help you with the process.

Sign up today to receive a complimentary Roth conversion package (free directions)!

Disclosure:
EquiTrust does not offer investment advice to any individual and this material should not be construed as investment advice. Products underwritten, issued and distributed by EquiTrust Life Insurance Company, West Des Moines, Iowa. 1202-GEN-EM-EXT-02-24

0:00 Introduction
12:34 Inherited IRA 2024 Overview
43:04 Questions and wrap up…(read more)

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Inherited IRA 2024 Overview

An inherited IRA, also known as a beneficiary IRA, is an account that is inherited by an individual after the original account holder passes away. Inherited IRAs can provide a valuable source of income for beneficiaries, but it’s important to understand the rules and regulations governing these accounts in order to maximize their benefits.

In 2024, there are several key factors to consider when it comes to inherited IRAs. One of the most significant changes in recent years is the elimination of the “stretch” provision for most non-spouse beneficiaries. Prior to 2020, non-spouse beneficiaries had the option to stretch out required minimum distributions (RMDs) over their own lifetimes, allowing the assets in the account to continue growing tax-deferred. However, the SECURE Act of 2020 eliminated this option for most beneficiaries, requiring them to withdraw all funds from the inherited IRA within 10 years of the original account holder’s death.

This change has important implications for beneficiaries, as it may result in larger tax liabilities and potentially impact their overall financial planning strategies. Inherited IRA beneficiaries should work closely with a financial advisor to understand the new rules and develop a distribution plan that aligns with their individual financial goals.

Inherited IRA beneficiaries should also be aware of the rules governing RMDs. Beneficiaries of traditional inherited IRAs are typically required to begin taking RMDs by December 31st of the year following the original account holder’s death. Failure to take RMDs can result in steep penalties, so it’s crucial to stay informed and comply with IRS regulations.

For beneficiaries of Roth inherited IRAs, RMDs are generally not required, but it’s still important to understand the rules governing distributions in order to maximize the tax advantages of these accounts.

Inherited IRAs can be a valuable asset for beneficiaries, providing a source of income and potentially valuable tax advantages. However, it’s crucial to understand the rules and regulations governing these accounts in order to maximize their benefits and avoid potential pitfalls. By working closely with a financial advisor and staying informed about the latest changes in tax laws, beneficiaries can ensure that they make the most of their inherited IRA in 2024 and beyond.