Master Your IRA (Advanced IRA Strategies) S.5 | Ep.5

by Retirement Advisor | Nov 28, 2022 | Inherited IRA

Pure Financial’s experts have educated you on the importance of having an IRA and given you some basic tools and strategies that you can put in place to get the best results from your retirement accounts. But on this show, Joe Anderson and Alan Clopine take you to a whole new level to help you master your IRA and maximize its full potential.

Make sure to subscribe to our channel for more helpful tips and stay tuned for the next episode of “Your Money, Your Wealth.”

Important Points

(1:00) – We’ve educated you about the importance of having an IRA and some of the basic tools and strategies you can put it in place to get the best results. But today we are taking you beyond the basics of IRA 101 to Master Your IRA.

(1:53)
• To Roll or Not to Roll
• Net Unrealized Appreciation
• RMD Aggregation
• Stretch IRA
• Beneficiary Mistakes

(3:20) – How You Can Add Funds to Your IRA

(4:05) – Reasons to Keep your 401(k)
• 401(k) fees may be low
• Penalty-free access at age 55
• Institutional investments may be available
• Potentially better protection from creditors

(5:21) – Reasons to Roll Your 401(k) into an IRA
• 401(k) fees may be high
• More investment choices possible
• To consolidate & simplify
• Roth conversion advantages

(6:12) – Speaking of 401(k)s, when you have company stock in your 401(k), there is a little-known strategy that can save you thousands of dollars in tax. It’s called “Net Unrealized Appreciation (NUA)”…

See also Wednesday Night Class

Net Unrealized Appreciation Strategy (NUA)
• Distribute company stock to your brokerage account
• Ordinary income taxes are due on cost basis
• Capital gains taxes are due on net unrealized appreciation, upon sale

(7:16) – Tax Savings Example Using Net Unrealized Appreciation (NUA) Strategy

(8:36) – Is the required beginning date of your first required minimum distribution (RMD) from an IRA in the year you turn 70½?

(9:48) – Let’s discuss the rules regarding required minimum distributions (RMDs)…

Hypothetical Example of First Year Required Minimum Distribution

(12:01) – Required Minimum Distributions (RMD): IRAs vs 401(k)s
IRAs
• All accounts may be combined
• Only need one RMD for all accounts
401(k)
• An RMD is required for each account

(13:12) – Inherited IRAs – Spousal
• Keep as a Beneficiary IRA
• Add to Your Own IRA

(15:20) – Inherited IRAs – Non-Spousal
• 5-Year Distribution
• Stretch IRA (RMDs over beneficiaries’ lifetime)

(16:00) – Example of Account Titling for a Stretch IRA
• “John Doe IRA (Deceased August 1, 2018) FBO Janice Brown”

(17:40) – Am I allowed to donate my required minimum distribution directly to a charity if I’m over 70 ½ and it is less than $100,000?

(19:54) – Let’s talk about some very common and unfortunate mistakes that we see regarding beneficiary designations…

Common Beneficiary Mistakes:
• Not Naming a Beneficiary
• Forgetting to Change Spousal Beneficiary after Divorce
• Not Naming a Contingent Beneficiary
• Naming Your Trust or Estate as Beneficiary

(21:40) – Steps to Help You Manage Your Beneficiaries

(23:00) – VIEWER QUESTION: I want my six grandchildren to inherit my IRA. Is it better to make my family trust the beneficiary or name each of the children as beneficiaries?

(24:16) – My wife has a large percentage of her retirement savings in a Roth IRA. Can I take my RMD’s from her Roth to save money on taxes?

If you would like to schedule a free assessment with one of our CFP® professionals, click here:

Make sure to subscribe to our channel for more helpful tips and stay tuned for the next episode of “Your Money, Your Wealth.”

Channels & show times:

IMPORTANT DISCLOSURES:
• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, Inc. A Registered Investment Advisor.
• Pure Financial Advisors Inc. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.
• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.
• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors. #YourMoneyYourWealth #YMYW #YourMoneyYourWealthTV…(read more)