Rywick, Bob
It might seem like the best way to address the tax obligation would be to spread distributions evenly over 10 years. However, in some cases, it would be advantageous to take a different tack. "Beneficiaries should consider their own marginal tax rate each year and how life events, such as...
If the original IRA owner was required to take RMDs at the time of their death, then RMD distributions are required based on the single life expectancy of the original IRA owner. If the original IRA owner had not yet reached the required beginning date for RMDs at the time of their death...
Qualified Roth IRA distributions are tax-free provided a Roth account has been funded for more than five years and the owner is at least age 59½, or disabled, or using the first-time homebuyer exception, or taken by their beneficiaries due to their death. Qualified Roth IRA distributions...
That reduces minimum distributions amounts and stretches out the life of the IRA.But there are limits to how far you can stretch out the IRA. When the beneficiary is more than 10 years younger, you assume the beneficiary is only 10 years your junior. After your death, the beneficiary can...
Rob said, "Which IRA is right for you will depend on a number of things, such as your income, whether you prefer potential tax savings now or in retirement, how required minimum distributions fit into your long-term plan, and whether you expect to be in a higher or lower tax bracket ...
You receive distributions as a series of substantially equal periodic payments The distribution is a qualified disaster distribution or qualified disaster recovery distribution Traditional IRA withdrawal rules after death If you pass away while there’s still money in your Traditional IRA account, the ben...
“Distributions from Individual Retirement Arrangements (IRAs),” indicated that yearly RMDs would be required for years one through nine after death. However, edits a few months later stated that “the beneficiary is authorized, but not obligated, to take distributions before” the 10-year limit....
Unlike a traditional IRA, Roth IRA contributions are not tax-deductible, and qualified distributions are tax-free. This means you contribute to a Roth IRA using after-tax dollars—money left over after you’ve paid your income tax—but as the account grows, you do not face any taxes on in...
If the original owner had already begun receiving RMDs at the time of death, the spousal beneficiary must continue to receive the distributions as calculated or submit a new schedule based on their own life expectancy. If the owner had not yet committed to an RMD schedule or reached theirrequi...