Are you aware of the impact your RMD strategy can have on your beneficiaries?
When you inherit an IRA, you are free to withdraw without penalty as much of the account as you want at any time. However, it’s important to be aware of any potential income tax implications for when you withdraw money from an inherited IRA.1
Here are a few things you should know when it comes to your beneficiaries and your RMDs:
Taxation depends on the type of IRA involved and the relationship of the beneficiary to the deceased.1
Non-spousal beneficiaries must withdraw all funds from an inherited IRA within 10 years of the original owner’s death.1
Spousal IRA beneficiaries have different rules and more options to consider when taking their RMDs.1
You can transfer up to $100,000 from an IRA directly to a qualified charity.1
If there are multiple beneficiaries, the IRA can be split into separate accounts for each one. If you want to split the IRA, you must do so by Dec. 31 of the year following the year of the original owner’s death.1
We can help you make sure your assets are distributed in the manner you wish. Contact us today with any questions you may have or to schedule a complimentary consultation.