{"id":13136,"date":"2024-05-01T15:08:07","date_gmt":"2024-05-01T15:08:07","guid":{"rendered":"https:\/\/zacksim.com\/blog\/?p=13136"},"modified":"2024-05-01T15:08:43","modified_gmt":"2024-05-01T15:08:43","slug":"keep-up-with-the-latest-rules-on-inherited-iras","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/keep-up-with-the-latest-rules-on-inherited-iras\/","title":{"rendered":"Keep Up With The Latest Rules On Inherited IRAs"},"content":{"rendered":"\n<p><em>Kelly R. from Phoenix, AZ asks: <\/em>Hello Mitch, I recently inherited an IRA and some other assets from a deceased parent, and I\u2019ve been trying to keep everything organized. As I look for information about making withdrawals from the IRA, I\u2019ve been confused as to what the actual rules are. Can you clarify, please?<\/p>\n\n\n\n<p><strong>Mitch\u2019s Response:<\/strong><\/p>\n\n\n\n<p>Thanks for writing, Kelly. There was indeed some confusion surrounding new rules for inherited IRAs, which were written into the SECURE Act of 2019. I\u2019ll clarify the rules for you here.<\/p>\n\n\n\n<p>Let me start with what I consider the bottom line: \u201cnon-eligible designated beneficiaries\u201d have a 10-year window to withdraw all the money from an inherited IRA. As an adult child of your deceased parent, you are a non-eligible designated beneficiary \u2013 meaning you must adhere to this rule. Spouses, minor children, and\/or disabled beneficiaries do not have to follow the 10-year rule.<sup>1<\/sup><\/p>\n\n\n\n<p>The confusion had to do with Required Minimum Distributions, or RMDs. If your deceased parent had already started RMDs, you will have mandatory yearly withdrawals instead of having the flexibility to withdraw all of the cash however you wanted\u2014as long as it was within a 10-year period.<\/p>\n\n\n\n<p><strong><u><a href=\"https:\/\/go.steadyinvestor.com\/8-steps-to-stress-free-retirement?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_05_02&amp;content=8_steps_to_stress_free_retirement\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/8-steps-to-stress-free-retirement?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_05_02&amp;content=8_steps_to_stress_free_retirement\">How to Enjoy Your Stress-Free Retirement<\/a><\/u><\/strong><\/p>\n\n\n\n<p>Are you feeling the weight of retirement uncertainty? You&#8217;re not alone. With statistics showing that a significant portion of Americans haven&#8217;t saved enough, it&#8217;s time to take action.<\/p>\n\n\n\n<p>I believe that with a good plan and some investment discipline, any investor can achieve their retirement goals. Our guide, <strong><em><u><a href=\"https:\/\/go.steadyinvestor.com\/8-steps-to-stress-free-retirement?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_05_02&amp;content=8_steps_to_stress_free_retirement\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/8-steps-to-stress-free-retirement?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_05_02&amp;content=8_steps_to_stress_free_retirement\">8 Steps Towards a Stress-Free Retirement<\/a><\/u><\/em><\/strong>, gives you a great roadmap\u2014whether you&#8217;re just getting started or you&#8217;re well on your way. You\u2019ll get essential information including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The \u201cmagic number\u201d every retirement investor needs to know<\/li>\n\n\n\n<li>How to plan for emergencies that can derail your retirement investments<\/li>\n\n\n\n<li>Why missing just 25 trading days can decimate your returns<\/li>\n\n\n\n<li>Three ways to generate income during retirement<\/li>\n\n\n\n<li><strong>Plus, other key steps to help you realize your retirement goals<\/strong><strong>Top of Form<\/strong><\/li>\n<\/ul>\n\n\n\n<p><br>If you have $500,000 or more to invest,\u00a0<strong><a href=\"https:\/\/go.steadyinvestor.com\/8-steps-to-stress-free-retirement?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_05_02&amp;content=8_steps_to_stress_free_retirement\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/8-steps-to-stress-free-retirement?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_05_02&amp;content=8_steps_to_stress_free_retirement\"><span style=\"text-decoration: underline;\">download our\u00a0<em>8 Steps Towards a Stress-Free Retirement<\/em><sup>2<\/sup><\/span><\/a>.<\/strong><\/p>\n\n\n\n<p>Before the 2019 rule change, beneficiaries could spread IRA distributions out over their entire lifetimes, so the legal change is significant.<\/p>\n\n\n\n<p>As you make your plans for distributions, an important note to make is that IRA distributions are taxable as ordinary income, so be sure to factor that into your annual tax planning. If you\u2019re still working and earning income, and you also decide to take a distribution from your Inherited IRA (or if you\u2019re required to do so given the RMD rule) your tax bill may be higher this year than it was last year, and you could even be bumped into a higher tax bracket. That might mean needing to make higher quarterly estimate payments, for example.<\/p>\n\n\n\n<p>Another possibility is that if you sell a house, or perhaps a business, or maybe even take gains in an investment account, <em>and <\/em>you also have to take a withdrawal from an Inherited IRA, it could add to your tax liability for the year. To stay on top of all the implications, it could make sense to speak with a tax professional to prepare for the impact.<\/p>\n\n\n\n<p>One idea to consider as you make plans for Inherited IRA distributions: just because you are required to withdraw the money, it doesn\u2019t mean you have to spend it! You can invest it instead. Once you withdraw the funds from the IRA, you can transfer it to an investment brokerage account or even another retirement account, and invest the money in accordance with your long-term goals and objectives.<\/p>\n\n\n\n<p>To further enhance your retirement portfolio, I&#8217;m thrilled to offer our complimentary guide, <strong><em><u><a href=\"https:\/\/go.steadyinvestor.com\/8-steps-to-stress-free-retirement?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_05_02&amp;content=8_steps_to_stress_free_retirement\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/8-steps-to-stress-free-retirement?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_05_02&amp;content=8_steps_to_stress_free_retirement\">8 Steps Towards a Stress-Free Retirement.<\/a><\/u><\/em><u><sup><a href=\"https:\/\/go.steadyinvestor.com\/8-steps-to-stress-free-retirement?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_05_02&amp;content=8_steps_to_stress_free_retirement\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/8-steps-to-stress-free-retirement?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_05_02&amp;content=8_steps_to_stress_free_retirement\">3<\/a><\/sup><\/u><\/strong>, which gives into:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The \u201cmagic number\u201d every retirement investor needs to know<\/li>\n\n\n\n<li>How to plan for emergencies that can derail your retirement investments<\/li>\n\n\n\n<li>Why missing just 25 trading days can decimate your returns<\/li>\n\n\n\n<li>Three ways to generate income during retirement<\/li>\n\n\n\n<li><strong>Plus, other key steps to help you realize your retirement goals<\/strong><\/li>\n<\/ul>\n\n\n\n<p>If you have $500,000 or more to invest, click on the link below to get your free copy today!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This week, Mitch discusses the latest rule changes for inherited IRAs, which were written into the SECURE Act of 2019. <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[66,71],"tags":[],"class_list":["post-13136","post","type-post","status-publish","format-standard","hentry","category-mitchs-mailbox","category-private-client-group"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/13136","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=13136"}],"version-history":[{"count":3,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/13136\/revisions"}],"predecessor-version":[{"id":13139,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/13136\/revisions\/13139"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=13136"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=13136"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=13136"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}