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In addition to weighing the pros and cons of lump-sum payouts vs. beneficiary IRAs, here are some other ways to maximize your IRA inheritance: ... For spouse beneficiaries, Chisholm recommends ...
Pros and cons of an irrevocable beneficiary Naming someone as an irrevocable beneficiary has its advantages, but it also comes with a few challenges. Here’s a breakdown of the key pros and cons ...
For example, if a spouse inherits a Roth IRA and decides to treat it as their own, any withdrawn earnings from the account will be taxable until the spouse reaches age 59 ½ and the five-year ...
In case of spouse inherited IRAs, the owner's spouse has the following options: treat the IRA account as his or her own, which means that he or she can name a beneficiary for the assets, continue to contribute to the IRA and avoid having to take distributions.
For instance, if a spouse inherits a Roth IRA and wants to treat it as their account, any earnings they withdraw will be taxable until they reach age 59½ and meet the five-year holding period.
For single persons, any party may be named beneficiary; however, if no beneficiary is named, then it defaults to the decedent's estate. When owner dies, spouse as beneficiary can roll both accounts into one IRA account. Other beneficiaries will be subject to forced distributions (taxable) over a ten-year period.
Inheriting an IRA as a beneficiary can increase your financial security. But, because an inherited IRA usually imposes a 10-year distribution schedule, the account may also create larger tax ...
Things to remember about spousal IRAs: Funding doesn’t mean ownership — Each spouse is the sole owner of their IRA and has control over the investments, beneficiaries and withdrawals for the ...