Your Retirement Playbook with Joe Clark, CFP.
In this segment we will cover: How do Inherited IRA’s work?

The art of childhood is knowing what to tell your parents and when! Join us on “Your Retirement Playbook” as we discuss what to think about when you are getting an inheritance and why you need to talk to your parents in advance.

Your Retirement Playbook” is an educational program designed to help listeners better understand their money. Each week Joe will discuss real-life situations in dealing with the Five Critical Elements and The Better Giver. Your Retirement Playbook is brought to you by Financial Enhancement Group, LLC. We have five Indiana locations and take care of families in 32 states. For 25 years, we have helped families prepare for retirement and navigate all that comes along the journey. Our trademarked approach, the Family Focus® process, revolves around the 5 Critical Elements (Your Life After Work, Tax Planning, Investment Playbook, Life Happens – The Good, The Bad and The Ugly, and Legacy Planning) that we believe are the cornerstones to a successful retirement. Our process is family-focused, simple, and works with your changing needs and goals.

Simply put, we help reduce financial regrets!

Call now to schedule your complimentary Next Steps Meeting today at 800-928-4001 or learn more at www.yourlifeafterwork.com.

P.S. Do you have a question for Joe? Submit it here at talktoFEG@yourlifeafterwork.com.
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LEARN MORE ABOUT: IRA Accounts

TRANSFER IRA TO GOLD: Gold IRA Account

TRANSFER IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA

Inherited IRA’s (Individual Retirement Accounts) are a type of retirement account that can be passed on to a beneficiary after the death of the original account holder. They are set up by the original account holder in order to provide financial security for their beneficiaries after their death.

Inherited IRA’s work in a few different ways depending on the type of IRA and the beneficiary. Generally, if the beneficiary is the spouse of the original account holder, they can take over the account as their own and continue to make contributions and withdrawals from it. If the beneficiary is not the spouse, they can either take a lump sum distribution or roll the money into an Inherited IRA.

When rolling the money into an Inherited IRA, the beneficiary must choose a beneficiary plan that meets their needs. This could be a traditional IRA, a Roth IRA, or a beneficiary IRA. Each of these options has different rules and regulations that must be followed in order to remain compliant with the IRS.

Once the beneficiary has chosen their plan, they must then decide how to manage the money. They can either leave the money in the account and take the required minimum distributions (RMDs) each year, or they can take a lump sum distribution.

The RMDs are the amounts that must be taken out of the account each year in order to avoid taxes. The amount of the RMD depends on the age of the beneficiary and the value of the account. The RMDs must be taken out by the end of the year, and if they are not taken out, the beneficiary will be subject to a penalty.

The lump sum distribution is a one-time distribution of the entire balance of the account. This option is generally only available if the beneficiary is not the spouse of the original account holder. The lump sum distribution is subject to taxes, and the beneficiary must pay taxes on the amount of the distribution.

Inherited IRA’s can be a great way to provide financial security for your loved ones after you are gone. It is important to understand the rules and regulations that come with these accounts in order to ensure that you and your beneficiaries are in compliance with the IRS.