Inherited IRA? Be Smart About Income Tax

Have you just inherited an IRA, or are you naming beneficiaries on your IRA or 401k? Understanding the tax implications and distribution rules is crucial, especially after the SECURE Act changes. In this video, we break down everything you need to know whether you're planning your own IRA or handling an inherited one.
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H E Scheil & Associates doing business as Cardinal Advisors holds an insurance license in all 50 states and DC. Listed below is the license # in each individual state. Alabama 675461, Alaska 100118081, Arizona 1800012348, Arkansas 100104794, California 0K32569, Colorado 464622, Connecticut 2463129, Delaware 1119857, DC 2887040, Florida L087124, Georgia 159539, Hawaii 445296, Idaho 507076, Illinois 100333675, Indiana 721739, Iowa. 1002056691, Kansas. 272705345, Kentucky 738674, Louisiana 614407, Maine AGN249408, Maryland 100048542, Massachusetts 2006645, Michigan 0104206, Minnesota 40411912, Mississippi 15016382, Missouri 8325733, Montana 100126008, Nebraska 100224332, Nevada 1007341, New Hampshire 2315847, New Jersey 1557889, New Mexico 1800010640, New York 1382342, North Carolina 1000092550, North Dakota 2000136230, Ohio 1028975, Oklahoma 100190853, Oregon 100237062, Pennsylvania 589318, Rhode Island 2309277, South Carolina 1907911784, South Dakota 10017719, Tennessee 2252224, Texas 1963111, Utah 513447, Vermont 1038574, Virginia 129027, Washington 864498, West Virginia 100107166, Wisconsin 100192273, Wyoming 275179

[@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.

[@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