Inheriting An IRA, What You Must Know And How To Plan For It. With the SECURE ACT it’s important to understand how the new rules affect your IRA’s and how they are taxed.

In this episode, Troy Sharpe, CFP®, talks about a strategy you can use to pass down your wealth to the next generation.

Legacy Planning is the process of setting up an efficient transfer of assets that minimizes the burden for your heirs and maximizes your assets. Your legacy plan could include leaving money to children, grandchildren, church or organizations and causes you believe in.

There are many tools and strategies available to accomplish this and no one method is the best for every situation. Part of the discussion about your legacy takes place when we discuss your retirement vision.

Proper legacy planning could involve a number of professionals, including attorneys, CPAs, trust companies and others. But our view is that your Retirement Professional should be the captain of the ship when it comes to all matters financial. We focus on coordinating with all the people needed to make your legacy vision become a reality.

As a CERTIFIED FINANCIAL PLANNER™ professional, CEO, Troy Sharpe, oversees the advanced Legacy Planning and professional coordination for our clients. No matter how many professionals your situation may require, we believe you want a CFP® Pro on your team.

Troy’s experience, education and network make him a valuable resource for all our clients. He shares his knowledge and resources with all the advisors at Oak Harvest, and works directly with advisors and their clients. Our team approach can help promote the best outcome for your situation.

Several different approaches may be employed, but when clients are clear with their vision, we can help make this process efficient and easy.

One of the biggest areas that clients should consider when it comes to legacy planning is the impact an unexpected medical emergency in retirement could have on your legacy plan. If not properly accounted for, this kind of emergency has the potential to cause a rapid spend-down of assets and the possibility that a surviving spouse will not be as comfortable as planned.

If Legacy Planning is important to you, we will address it as part of your Oak Harvest Path. The Path is the onboarding process that new clients follow during the first 12 months to ensure all their retirement concerns and unique goals are addressed in an orderly fashion.

Do you have a retirement plan that goes beyond allocating funds to truly fit your needs? We can help you create a retirement life plan customized for your retirement vision and legacy. Call us at (877) 404-0177

If you have $500K or more and would like a partnership with a firm to help you manage your investments and financial plan as in these videos, click on this link to connect with our advisors:

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Inheriting an IRA: What You Must Know And How To Plan For It

Inheriting an Individual retirement account (IRA) can be a significant financial event in one’s life. Whether you inherit the IRA from a spouse, parent, or another loved one, it’s important to understand the rules and implications of the inheritance. This article will cover what you need to know and how to plan for inheriting an IRA.

First and foremost, it’s essential to be aware of the rules and regulations surrounding inherited IRAs. The rules can vary depending on the relationship between the deceased account holder and the beneficiary. For example, if you inherit an IRA from a spouse, you have the option to roll the funds into your own IRA or treat the IRA as your own. On the other hand, if you inherit an IRA from a non-spouse, you may have to start taking required minimum distributions (RMDs) based on your life expectancy.

It’s also crucial to understand the tax implications of inheriting an IRA. Traditional IRAs are funded with pre-tax dollars, meaning that the distributions are generally subject to income tax. However, if you inherit a Roth IRA, the distributions are typically tax-free as long as the account was open for at least five years before the original account owner’s death.

When planning for an inherited IRA, it’s essential to consider your own financial situation and goals. For example, if you inherit an IRA from a spouse and are younger than the required minimum distribution age, you may want to roll the funds into your own IRA to continue the tax-deferred growth. On the other hand, if you inherit an IRA from a non-spouse and have to start taking RMDs, you’ll need to factor in the impact on your own retirement and tax planning.

Another important consideration is the potential impact on your estate planning. If you plan to leave the inherited IRA to your own beneficiaries, you’ll need to consider the best way to pass on the funds in a tax-efficient manner. This may involve setting up a trust or designating specific beneficiaries to minimize the tax burden on your heirs.

In addition to the financial and tax considerations, it’s also crucial to communicate with the trustee or custodian of the inherited IRA. They can provide guidance on the distribution options and the necessary paperwork to transfer the funds. It’s essential to understand the deadlines and requirements for taking distributions from the inherited IRA to avoid any penalties or unnecessary taxes.

In conclusion, inheriting an IRA can have significant financial and tax implications, and it’s crucial to understand the rules and plan accordingly. Whether you inherit a traditional IRA or a Roth IRA, it’s important to consider your own financial situation, goals, and estate planning needs. Seeking advice from a financial advisor or tax professional can also help you make informed decisions and create a plan for the inherited IRA that aligns with your long-term financial goals.