I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
@@HudsonEthan-00 The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?
Yay! I love that the Government can step in to help families squander family wealth! That's how we'll always have the poor; and that's how the largesse will never experience the American Dream.
Wtf how confusing My dad passed away recently, left most to my mom, but did give me a small portion of his ira accts.. My tax rate is also way lower now than my mom's. I guess I'll just take ten percent out per year minimum now. As if the sadness with his death and convoluted estate aren't enough. Simple enough for my mom as she has strict rmd rules.
They dont persecute it. They send a letter asking you to address the issue. You then take an RMD and show them the paperwork. They are just not interested in prosecuting mostly retired folks...
? The IRS canceled the waiver tax for 2021 to 2024 - bottom line you have 10 years to zero out the account starting after the year the person dies. Take some every year to avoid getting crushed In taxes on the 10th year
Do the new rules in 2022-53 create a way to settle an inherited IRA from before the "Secure act" that never had an RMD taken without the 50% penalty? What am I missing?
Im 41 and just lost my father April 29 2022. I completed my father's RMD before Dec 31 2022 and it is with my understanding that I have until Dec 31 2023 to take my first RMD. My main question: I was told by my brokerage firm that I can transfer existing stock /fund positions from inherited IRA to my taxable retail account to satisy RMDS. The brokerage firm said that the value of the stock position would be counted as income at the time of transfer and the cost basis on the position would be readjusted to the value of the position at the time of transfer. The Secure Act doesnt encourage deferred growth so I just want to verify this is correct. I have the account set up as a dividend portfolio in which I can take monthly payments that would exceed the annual RMD while the principal fluctuates in value but I dont want an expensive tax bill in year 10. Or should I just take monthly payments and empty the account out in years 5 to 10? I work on commission which doesnt help my tax situation. Some years I make more than others as a 10-99 independent contracter
My inherited IRA was in calendar year 2022. Since the IRS doesn't have a complete ruling on this, doesn't this just get grandfathered to the old rules?
WHY does this rule apply to ROTH IRAs where the government gets NO taxes from it at all? Beneficiaries should be able to leave it where it is forever and not be subject to a 50% penalty because they are unaware of this bs rule
In kind transfers...while market is depressed....long term capital gains taxed more favorably than income or short term capital gains...cost basis readjusted to market value at time of transfer...stock increases in value in a year or longer,it will be taxed less than as income..
You may not want to do that as it is "income" and will trigger a tax event for the full amount AND could impact your Medicare Part B premium two years down the road. It's complicated!
It depends how big the account is. If it's big enough, you want to spread out that tax liability especially if you're still working or on Medicare when you inherited the account.
So my mother at age 85 inherited an IRA from my brother. He was 58. Does she then just need to deplete the IRA within 10 years? That was my assumption and she has not taken any money out so far.
She can stretch it out. one of the exceptions is for situations where the beneficiary is less than 10 years younger than the deceased. So your mom being older fits that.
@@stevekrueger8386Beneficiaries 10 years or younger than the account owner are exempt from the 10 year rule. The mom would fall under the 10 year rule if the son died in 2020 or later. If prior to that, the old rules apply but under the new lower RMD calculations. That's my understanding of how the new rules work.
Thank you my friend! This clarifies the crazy unclear language the IRS put out. So are you saying that we should take go back and take an RMD for 2022 taxes (I'm working on mine now), or that it's unclear if this is actually required. I think you're saying the latter -- just checking! Thanks so much for this awesome video!
Thank you for the information! So when do you have to take your first RMD? For example, if the owner if the IRA I inherit dies on March 1st, 2024 - do I need to take the RMD in ‘24 or ‘25? Thank you.
Thx for the vid. Very insightful. So my father passed this year. I received an inherited IRA. He hadn't taken his RMD this year. Over age 75. I understand that I need to take that RMD for this year. My main question is that for the following 1-10 years is there an RMD, or do I fall under the area of the account needs to be zero'd out by the end of year 10 and that's it. Thanks!
50% of the amount you should have taken. Whereas the penalty for not filing the FBAR (foreign bank account report) without a good enough reason is 50% of the entire account!
If I inherit my moms IRA upon her death what RMD rate is used for distribution to me. The RMD my mom was using of an RMD rate I would use or is there a different chart?
No one knows not even the IRS as they never established rates for the new Bene during the 10 year window. Def take some out every year so you pay less in overall taxes (if it’s growing). Hope this helps.
@lburns440 This is known as successor beneficiary. It depends who you inherit it from. If inherited from an eligible beneficiary, you start your own 10 year clock. If it’s a non eligible beneficiary you have to continue their 10 clock. Hope this helps
Finally, someone who answered the question that was ‘glanced over’ in the video. Thank you. I was up all night , after competing my taxes, looking up this very subject to clarify that I am grandfathered in to the old RMD rules. Needs to be clarified on this video.
Mine will soon all be in a ROTH, so no RMDs during my lifetime (for now, at least). 1. When I die, will my kids have to start RMDs? 2. Will they have to take the funds out of my ROTH proportionally for each year (10% each year for 10 years), or can they wait and take it all out in the tenth year after my death?
While there is no tax implications to Roth IRAs you still need to take out the money. In the absence of clarity, I'd take out the amount annually to be safe.
Since there’s no taxes due, tell your kids to let it run for 10 years. It’s not the same tax implications for a traditional IRA since you already paid the taxes.
Generally true. However, depending on the inherited amount, if you are were only a few years to retirement and a high earner, it would have made sense to wait until you are retired so the income from your employment goes to zero. But now that strategy is mostly off the table.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
@@HudsonEthan-00 That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
@@lucinacatherwood My advisor is Victoria Carmen Santaella
You can look her up online
@@HudsonEthan-00 The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?
Yay! I love that the Government can step in to help families squander family wealth! That's how we'll always have the poor; and that's how the largesse will never experience the American Dream.
Wtf how confusing
My dad passed away recently, left most to my mom, but did give me a small portion of his ira accts..
My tax rate is also way lower now than my mom's. I guess I'll just take ten percent out per year minimum now. As if the sadness with his death and convoluted estate aren't enough. Simple enough for my mom as she has strict rmd rules.
What if the original (deceased) IRA owner, say age 75,did NOT take RMDs or did not in their last year of health struggles?
They dont persecute it. They send a letter asking you to address the issue. You then take an RMD and show them the paperwork.
They are just not interested in prosecuting mostly retired folks...
? The IRS canceled the waiver tax for 2021 to 2024 - bottom line you have 10 years to zero out the account starting after the year the person dies. Take some every year to avoid getting crushed In taxes on the 10th year
Do the new rules in 2022-53 create a way to settle an inherited IRA from before the "Secure act" that never had an RMD taken without the 50% penalty? What am I missing?
Im 41 and just lost my father April 29 2022. I completed my father's RMD before Dec 31 2022 and it is with my understanding that I have until Dec 31 2023 to take my first RMD.
My main question:
I was told by my brokerage firm that I can transfer existing stock /fund positions from inherited IRA to my taxable retail account to satisy RMDS. The brokerage firm said that the value of the stock position would be counted as income at the time of transfer and the cost basis on the position would be readjusted to the value of the position at the time of transfer. The Secure Act doesnt encourage deferred growth so I just want to verify this is correct. I have the account set up as a dividend portfolio in which I can take monthly payments that would exceed the annual RMD while the principal fluctuates in value but I dont want an expensive tax bill in year 10. Or should I just take monthly payments and empty the account out in years 5 to 10? I work on commission which doesnt help my tax situation. Some years I make more than others as a 10-99 independent contracter
What if you pass away before the required rmds..what happens to money...
My financial advisor forgot RMD in 2021 tax year . Figured it out if get penalty happy to pay and get a cheaper fiduciary and save .
My inherited IRA was in calendar year 2022. Since the IRS doesn't have a complete ruling on this, doesn't this just get grandfathered to the old rules?
WHY does this rule apply to ROTH IRAs where the government gets NO taxes from it at all? Beneficiaries should be able to leave it where it is forever and not be subject to a 50% penalty because they are unaware of this bs rule
What is the age basis for the RMD? The decedent's would be age?
if there no penalty for not taking the rmd in 2021-22 why would you take it? what can they do about that?
In kind transfers...while market is depressed....long term capital gains taxed more favorably than income or short term capital gains...cost basis readjusted to market value at time of transfer...stock increases in value in a year or longer,it will be taxed less than as income..
Is a RMD something you need to take out with both Roth and Traditional IRAs?
Just Traditional. Roth is already taxed so IRS doesn’t care.
Are RMDs required for an inherited ROTH IRA from a parent as a designated beneficiary?
Yes, the beneficiary must liquidate the ROTH IRA within 10 yrs. The good news is that withdrawals will be tax free.
Is it possible that all this can be avoided by just taking everything out the first year it's inherited?
You may not want to do that as it is "income" and will trigger a tax event for the full amount AND could impact your Medicare Part B premium two years down the road. It's complicated!
It depends how big the account is. If it's big enough, you want to spread out that tax liability especially if you're still working or on Medicare when you inherited the account.
If Grandpa lists 3 beneficiaries, 33%, 33%, 34%, does each benificiary have to take RMD? Or is it divided by 3 after distribution?
So my mother at age 85 inherited an IRA from my brother. He was 58. Does she then just need to deplete the IRA within 10 years? That was my assumption and she has not taken any money out so far.
She can stretch it out. one of the exceptions is for situations where the beneficiary is less than 10 years younger than the deceased. So your mom being older fits that.
@@stevekrueger8386Beneficiaries 10 years or younger than the account owner are exempt from the 10 year rule. The mom would fall under the 10 year rule if the son died in 2020 or later. If prior to that, the old rules apply but under the new lower RMD calculations. That's my understanding of how the new rules work.
Mom could have disclaimed it to you within 9 months
Thank you my friend! This clarifies the crazy unclear language the IRS put out. So are you saying that we should take go back and take an RMD for 2022 taxes (I'm working on mine now), or that it's unclear if this is actually required. I think you're saying the latter -- just checking! Thanks so much for this awesome video!
Thank you for the information! So when do you have to take your first RMD? For example, if the owner if the IRA I inherit dies on March 1st, 2024 - do I need to take the RMD in ‘24 or ‘25? Thank you.
Thx for the vid. Very insightful. So my father passed this year. I received an inherited IRA. He hadn't taken his RMD this year. Over age 75. I understand that I need to take that RMD for this year.
My main question is that for the following 1-10 years is there an RMD, or do I fall under the area of the account needs to be zero'd out by the end of year 10 and that's it. Thanks!
Yes, regardless take out 10% a year to avoid getting crushed on taxes in 10th year assuming it’s growing
@@bkfinancialplan oh it's growing..
50% WT..🤬
50% of the amount you should have taken. Whereas the penalty for not filing the FBAR (foreign bank account report) without a good enough reason is 50% of the entire account!
If I inherit my moms IRA upon her death what RMD rate is used for distribution to me. The RMD my mom was using of an RMD rate I would use or is there a different chart?
No one knows not even the IRS as they never established rates for the new Bene during the 10 year window. Def take some out every year so you pay less in overall taxes (if it’s growing). Hope this helps.
What if you have inherited an inherited IRA?
@lburns440 This is known as successor beneficiary. It depends who you inherit it from. If inherited from an eligible beneficiary, you start your own 10 year clock. If it’s a non eligible beneficiary you have to continue their 10 clock. Hope this helps
How does it work for an older inherited IRA that I have been taking distribution since 2012? Do i still get to stretch it out?
yeah those ones are not affected and are grandfathered in
Finally, someone who answered the question that was ‘glanced over’ in the video. Thank you. I was up all night , after competing my taxes, looking up this very subject to clarify that I am grandfathered in to the old RMD rules. Needs to be clarified on this video.
Mine will soon all be in a ROTH, so no RMDs during my lifetime (for now, at least). 1. When I die, will my kids have to start RMDs? 2. Will they have to take the funds out of my ROTH proportionally for each year (10% each year for 10 years), or can they wait and take it all out in the tenth year after my death?
My understanding is no RMDs, but they have to get it out of the inherited Roth IRA within 10 years
While there is no tax implications to Roth IRAs you still need to take out the money. In the absence of clarity, I'd take out the amount annually to be safe.
Since there’s no taxes due, tell your kids to let it run for 10 years. It’s not the same tax implications for a traditional IRA since you already paid the taxes.
Not really a big deal you should be taking money out every year so in year 10 you don’t get smoked in taxes
Generally true. However, depending on the inherited amount, if you are were only a few years to retirement and a high earner, it would have made sense to wait until you are retired so the income from your employment goes to zero. But now that strategy is mostly off the table.
Everyone is in different situations
Hyperbolic much? It's not that complicated.
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