Episode 326 - Rules Around Inherited IRAs

In this episode of Beer and Money, Ryan Burklo discusses the essential rules and obligations associated with inheriting an IRA. He explains the importance of understanding required minimum distributions (RMDs), the tax implications of withdrawals, and the necessary steps to set up an inherited IRA correctly. The conversation emphasizes the need for strategic financial planning and coordination with tax professionals to ensure compliance and optimize tax outcomes.

Check out our website: beerandmoney.net

Find us on YouTube: https://www.youtube.com/@beerandmoney

Subscribe to our newsletter: https://www.quantifiedfinancial.com/subscribe-now

Check out our Instagram: https://www.instagram.com/ryanburklofinance?igsh=ZTJzN3Jnajd5M2Mw

For a quick assessment of your current financial life go to: https://www.livingbalancesheet.com/lbsVision/lite/RyanBurklo

RMD website Ryan mentions: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-beneficiary

#InheritedIRA

#RMD

#taximplications

#financialplanning

#beneficiaryIRA

#retirementaccounts

#estateplanning

#taxstrategy

#financialadvice

#IRArules

Takeaways

Inheriting an IRA means dealing with tax obligations.
Required Minimum Distributions (RMDs) must be understood and managed.
If the deceased did not take their RMD, beneficiaries must ensure it is taken.
Beneficiaries have a 10-year window to distribute the inherited IRA funds.
Retitling the IRA to an inherited IRA is crucial.
Withdrawals from an inherited IRA are taxable as ordinary income.
Coordination with a CPA is essential for tax strategy.
Each RMD impacts the beneficiary's tax bracket.
Setting a schedule for RMDs helps in financial planning.
Understanding where to allocate the withdrawn funds is important.

Chapters

00:00 Understanding Inherited IRAs
03:00 Key Rules for Distributions
05:49 Setting Up Your Inherited IRA