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The change eliminates the so-called "stretch" IRA strategy, by which beneficiaries would take minimal distributions from IRAs over their lifetime, thereby stretching out their tax-deferred status ...
Although 2023 is entering its final stretch, there are still things you need to know about this year's tax changes that can impact your retirement accounts. For the most part, the changes are ...
Previously, if you inherited an IRA account, the annual required minimum distribution (RMD) was typically based on your life expectancy. But in 2020, the rules changed. Don't miss
A nonspouse IRA beneficiary must either begin distributions by the end of the year following the decedent's death (they can elect a "stretch" payout if they do this) or, if the decedent died before April 1 of the year after he/she would have been 72, [a] the beneficiary can follow the "5-year rule". The suspension of the RMD requirements for ...
The SECURE Act is estimated to cost $15.7 billion. It is primarily funded through a change to "stretch" IRAs. In the past, non-spouse beneficiaries who inherit IRAs could spread disbursements from the IRA over their lifetime. Under the SECURE Act, disbursements must be collected and taxed within 10 years of the original account holder's death. [8]
If you inherited an IRA before Dec. 31, 2019, you can still execute the stretch IRA. You will have to make a required minimum distribution this year as a result.
4. Take the tax break if you’re entitled to it. An inherited IRA may be taxable, depending on the type. If you inherit a Roth IRA, you’re free of taxes.
Continue reading → The post 2023 Roth IRA RMD Rules appeared first on SmartAsset Blog. You might be familiar with Roth IRAs or you might even have one yourself. But while Roth IRAs can be simple ...
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