================================
Sign up for email list here.
Follow me censorship-free!
My course “Can I Retire” will help reduce your stress when it comes to retirement planning.
Get it here:
and don’t forget there IS a 30 day money back guarantee if you’re not satisfied!
Get my books on Audible here:
Want to support what I’m doing for $10 a month?
Join my SubscribeStar page!
My Amazon Product page:
Anything you buy there Amazon pays me a commission. Much appreciated!
GET MY BOOKS:
ALL are FREE to Kindle Unlimited Subscribers!
You Can RETIRE on SOCIAL SECURITY:
The Tax Bomb In Your Retirement Accounts: How The Roth IRA Can Help You Avoid It:
Strategic Money Planning: 8 Easy Ways To Put Your House In Order
GET ALL MY LATEST BLOGPOSTS:
…(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
Simplicity has value – normal brokerage account is the most simple option for investing.
Another reason why 529 plans are a good tool
I was interested till your AOC snark. My goodness, Sir, it’s a distracting drum beat.
Failing to pay RMD's is not really enforced and is almost never penalized. At most, they ask you to get caught up… Its just not an urgent issue for the IRS.
Thus, ignoring any RMD's in a BDA has little consequence. The 10 year rule is a bit different story. They take that serious as they get serious penalty money for BDA's that exceed 10 years…..
Is this both Roth and Deffered IRAs?
So would this be both deferred and roth. IRAs?
I just inherited my dad's IRA this year. Right now my assumption is that I have to take his RMD this year and then I can deferred the rest for up to 10 years. If they change the rule to requiring RMD each year then I will just withdraw it all and invest in brokerage right away. Maybe that would be the better plan anyway.
I've got some of my father's 401k in a stretch IRA. I get the idea that the IRS wants a crack at the pot since it was never taxed in the past. But the stretch IRA really is wonderful. My stepmother was swamped by the emotions (and is pretty bad at math) so she took her share all at once and it messed up her taxes and her average income et al.
Very educational. I had never considered this issue before watching this video. Thanks.
Correct me if I am wrong, but doesn't a non-spouse who is 10 years or less younger still have stretch IRA as an option?
Josh, what is your process of choose a brokerage account?
Is this retroactive? Or is it for RMD’s in the future?
A lot of people with high IQs are terrible investors because they've got terrible temperaments. You need to keep raw, irrational emotion under control
My understanding is this is an IRS rule not a proposal. Act passed and the IRS has interpreted and issued a rule.
Good heads up!
I think people are thinking about a differed tax inherited IRA like it should be treated like real-estate step up in basis. There is no way the government is going to allow taxes that have been differed for decades to continue to be differed another lifetime. The beast is hungry and it wants a big scoop of that money. We just dodged a bullet on step up getting changed.
The American Communists will abolish inheritance. They will just tax it into non existence. Welcome to America.
F'n bs. I knew this for years. Uuuuuhhhhh
I disagree with you on this proposal. At this point in my life (a year older then you) I would not want to take annual RMD from an inherited IRA. Let me have the right to manage what I inherit in which my family worked hard for.
What you say about the purpose of an IRA makes sense. I'm fine with the way it is or the proposed changes. What I don't like is today's 50% penalty on non-spousal persons who don't take out all the funds in 10 years. Yeah, we can all plan but, what if? A 10% penalty is good for early IRA withdrawals. I think the penalty on not meeting the 10-year deadline should be 10% too.
Josh, don't you think that this one of the first of many patterns with the gov't/IRS? I can only see this accelerating until the gov't defaults and things go back to what our principles our country was founded on. Enjoy The Decline.
My wife was a beneficiary of an inherited IRA and we decided to pull 10% a year amounting to 34k and we pull the balance of what we need for income from our Brokerage account. We pulled our first 10% right before this last correction. We'll reevaluate at the beginning of next year if we'll continue to take 10% of that inherited IRA again, although its probably most likely we'll continue taking from the IRA. We certainly could let it sit for 10 but the amount you'd have to take in the last year would be taxed at a higher rate if we had to take it all at once. Inherited IRAs for some could be problematic if they would already have substantial income if they will have to have an annual RMD.
Got to rob the responsible people to keep up the deadbeats !