Even if you aren’t, you’ll still receive tax-free withdrawals from your Roth IRA. And since there are no required minimum distributions (RMDs), if you don’t need the money, you can leave your Roth alone and pass it to your beneficiaries.2 There are some costs associated with ...
As of January 2024, the IRS proposed regulation regarding inherited IRAs and annual RMDs had not been finalized. Keep your eyes onInvestopediafor updates. Or contact your financial advisor or tax advisor and request that they update you with relevant news from the IRS about inherited IRAs and RM...
Note: The RMD rules do not apply to Roth IRAs or Roth balances (except for inherited Roth balances) in workplace plans while the owner is alive. Do you really have to take money out? Yes, you do for traditional IRAs, 401(k) and 403(b) plans, SIMPLE, and SEP IRAs. RMDs are not...
So I’m not saying we don’t name grandkids as part of the planning but we used to have this huge tax opportunity. Where we would name the grandkids as beneficiaries they’d have such low RMDs we stretch it over their lifetime. Now we could almost create annuities or...