The Secure 2.0 Act has several features. In this video, Tom attempts to point out the difference between “Beneficiary” IRA and an “Inherited” IRA

(hint: there is no difference!).

Someone wrote into us because folks at their local financial institution were confusing them: some folks explained in easy term they could “take a little out each year from the IRA!” Someone else spelled they would face a 25% penalty if they made a mistake.

In Episode 375, Tom translates what this all meant.

#Secure2.0 #secureact #rmd #beneficiary #inherited #inheritedIRA #beneficiaryIRA
#cfp #monmouthcounty #monmouthcountynj #feeonly
#fiduciary #financialplanner #financialplanning

Mullooly Asset Management is a fee-only investment advisory firm located in Monmouth County, NJ. We work to educate our clients regarding managing the risk in their investments. We act in a fiduciary capacity with our clients at all times.

Our family of investments advisors (Tom, and his three sons – Brendan, Tim and Casey) are all CFP® Professionals.

To our knowledge, WE ARE THE ONLY FAMILY firm – in the nation – with four fiduciary, fee-only investment advisors who all have earned CERTIFIED FINANCIAL PLANNER™ certification.

Tom Mullooly is an investment industry veteran of over 35+ years. The “Mullooly Asset Show,” has over 350 episodes and over 450 unique podcasts, which can be found on the site

The “Mullooly Asset Show” answers questions and cover topics that YOU bring up.

Our topics and questions range from those brought up, or sent in, by our viewers.

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Wall Township, New Jersey 07719

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None of the content on our videos, podcasts, website or social media should ever be considered to be investment advice, financial planning advice or a recommendation to buy or sell investments. Nor should our content be considered research. Please our website for complete details.

This video is not a recommendation to buy or sell any of the investments mentioned. None of the securities mentioned in this video represent past specific recommendations of Mullooly Asset Management.

We rely on fundamental and technical analysis. Neither fundamental or technical analysis can predict the future, both methods have flaws. Past performance is no guarantee of future outcomes. Any Point & Figure charts used have been provided by our good friends at Dorsey Wright & Associates….(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

Secure 2.0, also known as the Beneficiary IRA or Inherited IRA, is a retirement savings account that allows individuals to pass on their retirement funds to their beneficiaries after they pass away. This type of IRA is a crucial tool for wealth transfer and ensuring financial security for future generations.

When a person passes away and leaves retirement funds in a traditional IRA or workplace retirement plan, the funds can be transferred to a Beneficiary IRA for the designated beneficiaries. The beneficiaries can then choose to take distributions from the account over their lifetime or within a 10-year period, depending on the rules set forth by the SECURE Act.

One of the key benefits of a Beneficiary IRA is that it allows for tax-deferred growth of the inherited assets. This means that the beneficiaries can continue to grow the assets in the account without having to pay taxes on the gains until they begin taking distributions.

Additionally, the Beneficiary IRA provides flexibility in terms of distribution options. Beneficiaries can choose to take required minimum distributions (RMDs) based on their life expectancy, which allows for smaller distributions and continued growth of the assets. Alternatively, beneficiaries can choose to take a lump sum distribution or empty the account within 10 years, depending on their own financial needs and goals.

Furthermore, the Beneficiary IRA offers creditor protection for the inherited assets. This means that the assets in the IRA are generally protected from creditors, ensuring that the beneficiaries receive the full value of the account.

It is important to note that the Beneficiary IRA has strict rules and guidelines that must be followed to avoid penalties and taxes. For example, beneficiaries must begin taking RMDs by December 31 of the year following the original owner’s death. Failure to take the required distributions can result in hefty penalties and taxes.

In conclusion, Secure 2.0, also known as the Beneficiary IRA or Inherited IRA, is a powerful tool for passing on retirement funds to future generations. It offers tax-deferred growth, flexible distribution options, and creditor protection for the inherited assets. However, it is important to understand and follow the rules and guidelines associated with the Beneficiary IRA to maximize its benefits and avoid potential penalties and taxes.