Inherited IRA? Be Smart About Income Tax

[@pauld9653]

Thank you Hans and Tom !
another micro tip.. leave an amount to your minor grandchildren as they get taxed at zero to low rates for up to $2600 of income a year for unearned income. Plus they get a longer
than 10 year rule.. 10 years from the time they become adults. So 20-25 k would be mostly taken out at tax advantaged rates over 10% a year distribution rate.

[@TomGriffith-u9t]

This can be a good idea. I will point out that minor grandchildren are still subject to the 10 year rule. To be an eligible designated beneficiary (allowed to stretch past the 10 years) it needs to be a minor child, not grandchild.

[@meme-fd3fs]

Do I have to pay taxes on my husband pension, it can be rolled over to inheritance ira. I am the wife and my husband passed this year.

[@CardinalAdvisors]

@@meme-fd3fs You can roll it over to a spousal inherited IRA. Take RMDs over your lifetime starting at age 73

[@meme-fd3fs]

@@CardinalAdvisors so I can’t touch the money at all until I am 73 ?

[@CherryRan123]

@@meme-fd3fsRMD is only required when you turned 73, before that, you can take regular withdrawals just make sure to consider the tax consequences or how you will be taxed

[@pch5938]

Is there any benefit from having the traditional or 401k in a trust?
I understand the tax consequences, thanks to you.👍

[@CardinalAdvisors]

The only benefit is control of the distributions to beneficiaries after you pass away. Hans