Understanding the New Rules for Inherited Retirement Accounts
The landscape of estate planning has undergone significant changes in recent years, particularly concerning inherited retirement accounts. As of the recent Internal Revenue Service (IRS) ruling finalized on July 18, 2024, heirs of retirement accounts now face new withdrawal requirements that could impact their financial planning and tax obligations. The New 10-Year Rule In the past, beneficiaries of inherited retirement accounts, such as Individual Retirement Accounts (IRAs) and 401(k)s, had the advantage of stretching out withdrawals over their lifetimes. This "stretch IRA" strategy allowed heirs to take smaller distributions over many years, minimizing their immediate tax burden and maximizing the ... Read More
5 Tips to Rethinking Your Retirement Plans
If you’re relying on a 401(k) or and IRA plan for your retirement, Kiplinger.com is suggesting it is time to rethink your financial retirement portfolio. You may have built up a significant nest egg with these plans, but it does come with serious baggage during your golden years. It is impossible to argue against the early stages of a 401(k) when employers match your contribution to the plan. You can take advantage of the tax breaks because contribution money comes out of your paycheck before calculating taxes and that money compounds every year. When you retire, however, the tax impact ... Read More
