The Secure Act dramatically limited “stretch IRAs,” which allowed people to draw down an inherited IRA over their lifetimes.
My husband and I have a combination of traditional and Roth IRAs naming our children and grandchildren as beneficiaries. With the passage of the Secure Act requiring distribution of inherited IRAs within 10 years, we want to revise our plan of leaving all of the investments to our children, as such inherited income would affect their tax bracket also.
If you had a potential heir who qualifies, you could consider naming them as the beneficiary of a traditional IRA and leaving the Roth money to the other heirs. Or you could leave the IRA to the children in lower tax brackets and the Roth to those in higher tax brackets. Alternately, you could focus on spending down the IRA to preserve other assets for your kids. The stretch IRA rules encouraged people to preserve their IRAs, but now it may make more sense to focus on passing down assets such as stock or real estate that would get a valuable “step up” in tax basis at your death.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
What to consider when shopping for camping setupsHere’s a guide and some advice for choosing the right tent for your needs.
Lire la suite »
Do you have to pay taxes on sports betting? If you bet in 2021, the taxman may be comingAlert to sports bettors: Beware of the taxman. Here’s what you need to know about legalized sports betting and taxes:
Lire la suite »
'Hollywood's Bald Blonde' Jannica Olin on Alopecia, Chris Rock's JokeHere's one actress's take on alopecia -- after having dealt with it for years now -- and just how offensive Chris Rock's joke about Jada actually was.
Lire la suite »
Why Everyone Is So Obsessed With K18Here's what you need to know before seeking out this buzzy, bond-building hair treatment. 🗝
Lire la suite »
Thinking About Buying a Car? Here's What Auto Experts Say You Need to KnowVehicle prices on both new and used cars and trucks have soared, and for auto shoppers that makes it’s a challenging time to find a deal.
Lire la suite »
The 4 Major Kinds of RegretHow often do you look back on your life and wish you had done things differently? Here's what everyone needs to know about regret.
Lire la suite »