Hi James - Can you please do a presentation on the RMD rules for non-spousal (i.e., kids) inherited Roth Accounts? Conflicting information out there on whether or not the kids will have to take RMD’s in years 1-9 of the IRS’s 10-Year Rule for inherited Roth accounts. You mentioned leaving all of the money in a Roth account until year 10 to maximize the tax-free growth, which would mean that there are no RMD’s on a non-spousal inherited Roth account. Others say that the same RMD rules apply to inherited IRA’s and Roths. Clarification on this would be greatly appreciated. Thanks, Craig
Hello - had a chance to look at your video. Great work. I am trying to decide whether to liquidate my IRAs and 401Ks as I'm getting tired of RMD distributions and paying taxes. Does it pay off to do this? Is there a formula or way to look at this that can help with decision - making? I have been doing RMDs for 3 years and it is painful. Thanks much.
I watched up to when you said you were done with spousal & inherited. You didn't mention anything about when a spouse is 10 or more years younger. The RMD is affected.
You should consider editing the part that discusses RMDs for inherited IRAs. The rules have been clarified since you recorded this and some people do need to take RMDs before the end of the 10 year period and can't wait until the end.
Did I hear you correctly? You said those subject to the 10-year rule don't have to take a certain amount in each of the ten years. That's NOT correct and misleading. You must use the IRS Table 1 Single Life Expectancy for Beneficiaries to take the minimum required in each of the 10 years. You can take more, but not less each year. For each year going forward, you subtract another year from the original divisor you used the first year. I don't think the IRS has adjusted that requirement. Using this method will leave you with a pretty large lump sum to take in year 10, however,. Best to take more than the minimum. Of course, that depends on your situation.
I believe this is true if the deceased was already taking RMDs, but if they weren't you aren't required to take one each year. Either way the inherited non-spouse IRA has to be depleted by the end of the 10th year.
James, Great content and you have such an excellent manner explaining complex subjects. Question, I have what I am told is a 401A plan with my Union, I do NOT/cannot contribute monies only my employer does or can contribute for the last 23 years. Is a 401A subject to RMDs? Best Regards Rich
Hi James - Can you please do a presentation on the RMD rules for non-spousal (i.e., kids) inherited Roth Accounts? Conflicting information out there on whether or not the kids will have to take RMD’s in years 1-9 of the IRS’s 10-Year Rule for inherited Roth accounts. You mentioned leaving all of the money in a Roth account until year 10 to maximize the tax-free growth, which would mean that there are no RMD’s on a non-spousal inherited Roth account. Others say that the same RMD rules apply to inherited IRA’s and Roths. Clarification on this would be greatly appreciated. Thanks, Craig
Hello - had a chance to look at your video. Great work. I am trying to decide whether to liquidate my IRAs and 401Ks as I'm getting tired of RMD distributions and paying taxes. Does it pay off to do this? Is there a formula or way to look at this that can help with decision - making? I have been doing RMDs for 3 years and it is painful. Thanks much.
I watched up to when you said you were done with spousal & inherited. You didn't mention anything about when a spouse is 10 or more years younger. The RMD is affected.
Exactly why I clicked on this video
You should consider editing the part that discusses RMDs for inherited IRAs. The rules have been clarified since you recorded this and some people do need to take RMDs before the end of the 10 year period and can't wait until the end.
Did I hear you correctly? You said those subject to the 10-year rule don't have to take a certain amount in each of the ten years. That's NOT correct and misleading. You must use the IRS Table 1 Single Life Expectancy for Beneficiaries to take the minimum required in each of the 10 years. You can take more, but not less each year. For each year going forward, you subtract another year from the original divisor you used the first year. I don't think the IRS has adjusted that requirement. Using this method will leave you with a pretty large lump sum to take in year 10, however,. Best to take more than the minimum. Of course, that depends on your situation.
I believe this is true if the deceased was already taking RMDs, but if they weren't you aren't required to take one each year. Either way the inherited non-spouse IRA has to be depleted by the end of the 10th year.
You mentioned health saving accounts, what about asset based LTC policy? SEP Iras as spousal inherited treated same as regular IRA? Thank you!
James, Great content and you have such an excellent manner explaining complex subjects. Question, I have what I am told is a 401A plan with my Union, I do NOT/cannot contribute monies only my employer does or can contribute for the last 23 years. Is a 401A subject to RMDs? Best Regards Rich
Great presentation of a difficult topic
Comprehensive information well organized and delivered, as usual. Thank you James.
Thanks for tuning in!