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.
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.
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.
Well done, Ivanna! Glad to see someone very knowledgeable besides Ed Slott speak to us about IRA distribution rules.
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.
Interesting insight. Thanks.
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.
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.
I'm still confused LOL