Inherited IRA Investors Get Another Break, but the Clock Is Ticking on RMDs

Plus, 2 cheap utility stocks as AI transforms the overlooked sector into a growth opportunity.
Denise Appleby, IRA Quick Reference Guide author known as The IRA Whisperer, clears up the confusion about what the IRS waived concerning inherited IRAs in 2024. Travis Miller, energy and utilities strategist for Morningstar Research Services, talks about how the artificial intelligence boom is driving data center demand. He also points to 2 cheap utility stocks expected to benefit.
00:41 Disney’s Improved Streaming Results
01:57 Uber’s Strong Financial Results in 2024
02:56 Palantir’s Performance Led by AI Platform
04:06 Opportunities with Artificial Intelligence and Utility Stocks
04:36 Utility Stocks: When Will the Market Give the Sector Some Respect?
05:09 Where Do Utilities Fit into AI Growth?
06:36 How Higher For Longer Interest Rates Could Affect Utilities
08:18 Utility Stock Picks
09:49 New Rules for Inherited IRAs
10:31 Withdrawals from Inherited IRAs and the 10-Year Rule
Important Distinction About What the IRS Waived in 2024
12:28 Tax Implications for Inherited IRAs
17:16 -Will the IRS Suspend the Withdrawal Penalty for Inherited IRAs in 2025?
Read about topics from this episode.
Disney Earnings: Improved Streaming Results Come at the Expense of Continued Linear Weakness www.morningstar.com/stocks/di...
Uber Earnings: Network Effect Continues to Drive Profitable Growth for Uber www.morningstar.com/stocks/ub...
Palantir Earnings: AI Platform Drives Strong Start to 2024 www.morningstar.com/stocks/pa...
Utility Stocks: When Will the Market Give the Sector Some Respect? www.morningstar.com/stocks/ut...
IRS Extends Waiver of Excise Tax for Inherited IRAs, but Not RMDs www.morningstar.com/personal-...
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Read what our team is writing:
Ivanna Hampton www.morningstar.com/people/iv...
Travis Miller www.morningstar.com/people/tr...
Denise Appleby www.morningstar.com/people/de...
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[@JohnSmith-hw3ef]

Well done, Ivanna! Glad to see someone very knowledgeable besides Ed Slott speak to us about IRA distribution rules.

[@pinguinobc]

I appreciate Denise's update and advice. The inherited IRA rules are indeed confusing and need to be clarified. I like how she asks if the IRS is crazy -- hehe. I am considering writing my member of Congress per her recommendation.

[@VegasVaron]

Interesting insight. Thanks.

[@cihant5438]

I really feel for Denise trying to explain the crazy maze of RMD rules with exceptions to exceptions that congress has created. She did a great job, but you have to be a rocket surgeon to understand it. Punchline is that you want to distribute your RMDs over the 10 years to avoid a huge tax bill, especially if you are already currently working and getting income.

[@papasquat355]

As you take the RMD's, increase your 401k traditional contributions in kind and the income taxes on the RMD's are effectively deferred thru the 401k until your own retirement.

[@tfc850]

I'm still confused LOL