In late December of 2019, The SECURE Act became enacted into law. If you were the beneficiary of a loved one’s IRA (or other retirement account) and they passed away after January 1st of 2020, there is a new set of rules that will affect that inherited retirement account. Nic draws up an easy-to-follow flowchart to show what rules your inherited IRA will follow depending on your unique situation.

View and Download the Flow Chart:

Host:
Nic Daniels BFA™, Financial Advisor
 
Find Us:

…(read more)

LEARN MORE ABOUT: IRA Accounts

TRANSFER IRA TO GOLD: Gold IRA Account

TRANSFER IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA

An Inherited IRA is a special type of retirement account that is passed down to a beneficiary after the original account holder passes away. It can be a great way to provide financial security for your loved ones, but it’s important to understand the rules and regulations that come with this type of account.

When you inherit an IRA, the first step is to determine which type of account it is. There are two main types of Inherited IRAs: Traditional IRAs and Roth IRAs. Traditional IRAs are typically funded with pre-tax dollars, while Roth IRAs are funded with after-tax dollars. Depending on the type of IRA you inherit, you may be required to take a minimum distribution each year.

Once you’ve determined the type of account, the next step is to decide what to do with the money. You have several options, including keeping the money in the account, rolling it over into another IRA, or withdrawing the funds. Keeping the funds in the account is often the best option if you want to continue to benefit from tax-deferred growth. If you decide to withdraw the funds, you’ll need to be aware of any applicable taxes and penalties.

If you decide to roll the funds over into another IRA, there are a few things to consider. First, you’ll need to decide whether to open a new account or roll the funds into an existing IRA. If you open a new account, you’ll need to choose a custodian and decide how to invest the funds. When rolling the funds over into an existing IRA, you’ll need to make sure the account is set up correctly.

Finally, it’s important to keep in mind that Inherited IRAs have special rules and regulations. You’ll need to be aware of these rules and make sure you’re following them to avoid any potential penalties. It’s also important to keep records of all transactions and withdrawals to ensure you’re in compliance with the IRS.

Inheriting an IRA can be a great way to provide financial security for your loved ones. However, it’s important to understand the rules and regulations that come with this type of account before making any decisions. With the right guidance, you can make sure your Inherited IRA is managed properly and provides the financial security you intended.