top of page

Options Are Important When Inheriting an IRA

Apple computer

Forbes recently discussed some possibilities for beneficiaries of IRAs, including the good deals and the bad deals in "What To Do If You Inherit an IRA."

While inheriting an IRA account can be great news for some, it can also turn to bad news, if the beneficiaries make the wrong decisions about what to do with those accounts.

The single most important thing to keep in mind is that an inherited IRA can be the source of lifetime payments or it can be a source of a very large and immediate tax bill.

If you are smart, then you will want it to be the former, unless you absolutely need a large sum of money right away.

The general rule of thumb is that you should never take more out of an inherited IRA than you are absolutely required to take by law. It is recommended that you take no more than the required minimum distribution.

Exactly how much that is, will depend on several factors.

Before you make a decision on an inherited IRA, it would most likely be beneficial to consult an attorney.

Reference: Forbes (July 10, 2017) "What To Do If You Inherit an IRA."

1 view0 comments

Related Posts

See All

You’ve Received an Inheritance. Now What?

“Are you inheriting money from a relative? Or receiving funds from a lawsuit? Or planning to be a lucky lottery winner? Inheriting money puts a whole new spin on your outlook on money, says The Kansas

Want to Give Away All of Your Money?

“Even if you’re not a millionaire, you may have reached a stage where you think, It’s enough. It could even be a bit too much. A second car may sit mostly in your garage. A beloved vacation home may h

Comments


bottom of page