A beneficiary that is the spouse of the decedent can roll the account into their own account or retitle it as an inherited account. Non-spouse beneficiaries do not have the rollover option. They are required to take mandatory distributions on an annual basis that are based on the age of the beneficiary and the balance […]
IRA Inheritance Planning
This is a good question because the answer has recently changed. Another provision that is contained within the SECURE Act gave traditional account holders the ability to contribute into their accounts for any length of time. In the past, contributions had to cease when account holders reached the required minimum distribution age. Roth account holders […]
The answer is yes and no. If you have a traditional individual retirement account, you are compelled to take required minimum distributions (RMDs) when you are 72 years of age. This age was 70.5, but it was increased when the SECURE Act was enacted at the end of 2019. The RMD requirement is in place […]
Yes, there are a number of exceptions. You can take money out of an individual retirement account to cover unpaid medical expenses, and you can use the funds to pay higher education tuition. If you are unemployed, you can accept distributions to cover your health insurance premiums. An account holder may also withdraw up to […]
For both types of accounts, you can accept distributions without being penalized when you are 59.5 years of age.
You can take distributions at any time, but there is a 10 percent penalty. This applies to all of the assets in a traditional account. There is no penalty for Roth account holders if they remove portions of the contributions, but the penalty is applicable if the earnings are withdrawn.