The clarification between RMD and Required Beginning Date (RBD) and what it means to what a non spouse beneficiary needs to do is most helpful. Many videos I have watched don’t clarify this. I did find it amusing at about 4:24 you say the IRS passed the Secure Act 1.0. While I agree the IRS has created much confusion about these RMDs and therefore deserve some of the blame, it was really congress that changed everything. These changes and the unexpected passing of my spouse in 2021 made me realize that my 2 adult children will be pushed into a higher tax bracket than me. I have been aggressively converting to Roth while taxes are low prior to 2026.
Nice post. People who have successful kids should do them a solid and convert to Roth IRAs, before 2026 if feasible. If kids aren't successful, a will might be needed to avoid early dissipation. RMDs are the minimum distributions, without a will beneficiaries can empty it quickly!
Planning ahead can really minimize taxes! I’ve been in the crypto/stock markets for half a year now, and it’s been a game changer. I was able to reinvest my RMD strategically, and I’m now pulling in about $25k a week, despite doing very little trading myself. It’s a nice cushion against financial stress. Best of luck with your RMD decisions!
You might want to consider consulting with Dave for guidance. He can help create strategies that are specifically designed to meet your long and short-term goals.
Dave is someone with a lot of experience in the market, offering guidance and personalized strategies to help people navigate things more effectively. Whether you’re just starting out or more experienced, his approach can be really helpful for anyone looking to improve!
With Roth IRA, the money you are contributing has already been taxed. At any time for any reason, you can withdraw your contributions tax-free and penalty-free. Additionally, any earnings on investments can also be withdrawn tax-free and penalty-free, Not sure how much to contribute, I'm still at a crossroads deciding if to liquidate my $338k stock portfolio.
For the average person, the strategies are fairly demanding. In actuality, most professionals who have the necessary abilities and knowledge to complete such occupations do so successfully.
I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Nice and clear info, thank you. I would appreciate hearing more tax strategies - different scenarios for Non-Eligible Designated Beneficiaries. How does one figure out their RMD going forward for the 10 yr (rule for Traditional IRA). I understand there is a calculator, but it is unclear what amount each payment is based on. And what if you are one beneficiary and there was more than one. Is it based on your portion of the Inherited IRA? What balance is it based on, the year the decedent passed or your specific portions, 12/31/XXXX of each year (Passed in 2024 = taking necessary remaining portion of RMD. For future year 1, year 2, year 3... how do you figure it out?)
Instead of cashing stocks out. Can I open an account and transfer the shares from my inherited account into my new account and then pay the taxes from cash on hand? Keeping my stocks intact.
Thank you for this video. It is was quite helpful. However, further clarification is needed as to whether the RMDs are based on the decedent's life expectancy or the nonspouse beneficiary. Whose life expectancy would the RMDs be based on?
The RMD calculation is based on the life expectancy of the non-spouse beneficiary even though they may be subject to the 10 year rule. (Comment is for education. Not advice)
I inherited an IRA in 2013 (I think). Decedent born in 1936. I think I am in the stretch category, but still can't find clear direction. Gonna watch 10 or 12 more times! Thanks for the video.
This was incredibly helpful. Tiny follow up question: the IRA I inherited had my brother's birthday wrong. They thought he was 97 at time of death when in truth he was 58. At the time, I didn't understand that I should probably correct this. I have simply taken 1/10th out for the first year (2024) without awareness or concern about what the RMD might be (based on the incorrect assumption of his age at the time of death. ) Do I need to go back and correct his age with anyone to avoid being penalized for not worrying about RMDs? He passed in Nov 2023, so it definitely is under the new rules.
If his birth date was wrong on the account you can most likely provide the custodian of his Ira with a copy of his birth certificate to verify the correct date of birth. You would then be grandfathered in under the stretch rule your were within 10 years of age, and your first rmd for your inherited Ira wound be due by 12/31/24. No 10 year rule. (Comment for education. Not advice)
If you name a trust as beneficiary of a Roth IRA, is money taken out - by year 10 - of the Roth IRA and put into the trust taxable? In other words, can you have it accumulate so you could delay distributions to your children for a time period beyond 10 years?
Ahat about a deferred annuity w/ 20 years certain in a ROTH IRA. What if it is an EDB inherits this Annuity- can they take payments for all XYS years if the original owner died? How does at Stretch rule work then? My insurance company said they WOULD get all XYZ years regardless-is that correct? Thank you!
How would the 10 year rule apply when the beneficiary was a trust? We now have an inherited traditional IRA for Trust and Inherited Roth for a Trust. There is only one bene of the trust, a non-minor.
Sounds like RMDs over 10 years for IRA. Roth IRA doesn't require RMDs, but I think the IRS requires bene to liquidate within 10 years of 12/31 of the year following the decedent's death. The Roth gives longer period for investment to accumulate tax free. It might make sense to consider converting the regular IRA to the Roth IRA--could be better for the estate to pay the income taxes than beneficiary.
I fall under one of the exceptions. And my brother wasn’t taking RMD at time of death. What do you mean by “ have to take small RMDS? over my lifetime.
Since you were not more than 10 years younger than your brother, you qualify for the stretch rules, which means you are not subject to the 10-year rule, but you would be required to start taking small distributions from your inherited IRA each year (called required minimum distributions - RMDs) beginning the year after he passed away, and each year thereafter for the rest of your life. Those RMDs are based on your date of birth in the IRS single life expectancy table. I put a link to a calculator for RMD‘s in the description of this video. (Comment is for education. Not advice)
@@greenbushfinancialgroup thank you. Is this true even for inherited Roth IRA? I also tried your calculator and the amount wouldn’t be entered. Anyway, I’ll contact my accountant. Thank you for this video. Very good info
Assuming you have to take RMD’s from an inherited IRA. Which RMD age table do you use? It looks like it is the person’s age that inherited IRA and not the deceased. Is that correct?
It’s my understanding that beneficiaries use the Single Life Expectancy table based on their own date of birth (not the decedents). (This comment is for education. Not advice)
The clarification between RMD and Required Beginning Date (RBD) and what it means to what a non spouse beneficiary needs to do is most helpful. Many videos I have watched don’t clarify this. I did find it amusing at about 4:24 you say the IRS passed the Secure Act 1.0. While I agree the IRS has created much confusion about these RMDs and therefore deserve some of the blame, it was really congress that changed everything. These changes and the unexpected passing of my spouse in 2021 made me realize that my 2 adult children will be pushed into a higher tax bracket than me. I have been aggressively converting to Roth while taxes are low prior to 2026.
Nice post. People who have successful kids should do them a solid and convert to Roth IRAs, before 2026 if feasible. If kids aren't successful, a will might be needed to avoid early dissipation. RMDs are the minimum distributions, without a will beneficiaries can empty it quickly!
This was super helpful and relatively easy to understand/follow by someone who is a financial dummy (like myself)! Thank you.
Green captions were VERY helpful. Thank you!
Planning ahead can really minimize taxes! I’ve been in the crypto/stock markets for half a year now, and it’s been a game changer. I was able to reinvest my RMD strategically, and I’m now pulling in about $25k a week, despite doing very little trading myself. It’s a nice cushion against financial stress. Best of luck with your RMD decisions!
Wow, $25k a week? That's incredible! How did you get started on that path?
@@CasaBeltrauc I signed up for a 1-on-1 trading session. It’s similar to copy trading, but you get tailored guidance specific to your goals.
It's a secure and supportive way to improve your trading skills while earning, the best part is there's no upfront payment required
You might want to consider consulting with Dave for guidance. He can help create strategies that are specifically designed to meet your long and short-term goals.
Dave is someone with a lot of experience in the market, offering guidance and personalized strategies to help people navigate things more effectively. Whether you’re just starting out or more experienced, his approach can be really helpful for anyone looking to improve!
Very clear and easy to understand the way you explained this.
With Roth IRA, the money you are contributing has already been taxed. At any time for any reason, you can withdraw your contributions tax-free and penalty-free. Additionally, any earnings on investments can also be withdrawn tax-free and penalty-free, Not sure how much to contribute, I'm still at a crossroads deciding if to liquidate my $338k stock portfolio.
For the average person, the strategies are fairly demanding. In actuality, most professionals who have the necessary abilities and knowledge to complete such occupations do so successfully.
I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
Impressive can you share more info?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
Great video Michael...very clear! Thank you.
Nice and clear info, thank you. I would appreciate hearing more tax strategies - different scenarios for Non-Eligible Designated Beneficiaries. How does one figure out their RMD going forward for the 10 yr (rule for Traditional IRA). I understand there is a calculator, but it is unclear what amount each payment is based on. And what if you are one beneficiary and there was more than one. Is it based on your portion of the Inherited IRA? What balance is it based on, the year the decedent passed or your specific portions, 12/31/XXXX of each year (Passed in 2024 = taking necessary remaining portion of RMD. For future year 1, year 2, year 3... how do you figure it out?)
Awesome video. Thank you
Instead of cashing stocks out. Can I open an account and transfer the shares from my inherited account into my new account and then pay the taxes from cash on hand? Keeping my stocks intact.
Thank you for this video. It is was quite helpful. However, further clarification is needed as to whether the RMDs are based on the decedent's life expectancy or the nonspouse beneficiary. Whose life expectancy would the RMDs be based on?
The RMD calculation is based on the life expectancy of the non-spouse beneficiary even though they may be subject to the 10 year rule. (Comment is for education. Not advice)
Very informative! Thank you
For the inherited IRA RMDs, who age do you use, the decedent's age or the person who inherited the IRA age?
For the RMD calculation, you use the age of the person who inherited the IRA (comment is for education. Not advice.)
If a spouse inherits a Roth IRA, do they have to roll into your own IrA ro avoid 10 year rule?
I inherited an IRA in 2013 (I think). Decedent born in 1936. I think I am in the stretch category, but still can't find clear direction. Gonna watch 10 or 12 more times! Thanks for the video.
Yes, you would be in the stretch category. Just RMDs based on your life expectancy. No 10 year rule (comment for education. Not advice)
This was incredibly helpful. Tiny follow up question: the IRA I inherited had my brother's birthday wrong. They thought he was 97 at time of death when in truth he was 58. At the time, I didn't understand that I should probably correct this. I have simply taken 1/10th out for the first year (2024) without awareness or concern about what the RMD might be (based on the incorrect assumption of his age at the time of death. ) Do I need to go back and correct his age with anyone to avoid being penalized for not worrying about RMDs? He passed in Nov 2023, so it definitely is under the new rules.
If his birth date was wrong on the account you can most likely provide the custodian of his Ira with a copy of his birth certificate to verify the correct date of birth. You would then be grandfathered in under the stretch rule your were within 10 years of age, and your first rmd for your inherited Ira wound be due by 12/31/24. No 10 year rule. (Comment for education. Not advice)
If you name a trust as beneficiary of a Roth IRA, is money taken out - by year 10 - of the Roth IRA and put into the trust taxable? In other words, can you have it accumulate so you could delay distributions to your children for a time period beyond 10 years?
Ahat about a deferred annuity w/ 20 years certain in a ROTH IRA. What if it is an EDB inherits this Annuity- can they take payments for all XYS years if the original owner died? How does at Stretch rule work then? My insurance company said they WOULD get all XYZ years regardless-is that correct? Thank you!
How would the 10 year rule apply when the beneficiary was a trust? We now have an inherited traditional IRA for Trust and Inherited Roth for a Trust. There is only one bene of the trust, a non-minor.
Sounds like RMDs over 10 years for IRA. Roth IRA doesn't require RMDs, but I think the IRS requires bene to liquidate within 10 years of 12/31 of the year following the decedent's death. The Roth gives longer period for investment to accumulate tax free. It might make sense to consider converting the regular IRA to the Roth IRA--could be better for the estate to pay the income taxes than beneficiary.
I fall under one of the exceptions. And my brother wasn’t taking RMD at time of death. What do you mean by “ have to take small RMDS? over my lifetime.
Since you were not more than 10 years younger than your brother, you qualify for the stretch rules, which means you are not subject to the 10-year rule, but you would be required to start taking small distributions from your inherited IRA each year (called required minimum distributions - RMDs) beginning the year after he passed away, and each year thereafter for the rest of your life. Those RMDs are based on your date of birth in the IRS single life expectancy table. I put a link to a calculator for RMD‘s in the description of this video. (Comment is for education. Not advice)
@@greenbushfinancialgroup thank you. Is this true even for inherited Roth IRA? I also tried your calculator and the amount wouldn’t be entered. Anyway, I’ll contact my accountant. Thank you for this video. Very good info
I thought I had to start doing this in 2024.
RMDs for 10 year rule beneficiaries do not begin until 2025 (comment for education. Not advice)
Assuming you have to take RMD’s from an inherited IRA. Which RMD age table do you use? It looks like it is the person’s age that inherited IRA and not the deceased. Is that correct?
It’s my understanding that beneficiaries use the Single Life Expectancy table based on their own date of birth (not the decedents). (This comment is for education. Not advice)
@@greenbushfinancialgroup that is how I’m reading it too. Thank you for the “non-advice”. 👍😁
I’m doubling my RMA in 2024 the world is close to getting blown up
@@John-zb8ji what does RMA stand for?
It’s the sum of (RMD + IRA) 😁