Ads
related to: can you stop taking rmds forever after divorce after death
Search results
Results From The WOW.Com Content Network
Inheriting an IRA or 401(k) can add to your wealth but it can also bring some potential tax headaches. One tricky issue involves required minimum distributions or RMDs. IRA and 401(k) plan owners ...
But you can't defer those taxes forever. Eventually, the government wants its tax revenue. That's why it imposes required minimum distributions , or RMDs, on accounts like the 401(k) and IRA.
If you inherited an IRA from someone after Dec. 31, 2019, you may have to take an RMD in 2025. The SECURE Act established a rule requiring beneficiaries (with limited exceptions) who inherit an ...
Instead of taking RMDs based on your own life expectancy, you may be able to take RMDs based on the original owner's life expectancy. That results in a smaller distribution from the inherited account.
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 ...
If you inherited an IRA after Dec. 31, 2019, from someone who was already taking required minimum distributions, you'll have to continue taking annual RMDs until you empty the account. The IRS ...
The IRS released a ruling this year that you can base those RMDs on the original owner's life expectancy instead of your own, potentially reducing the amount you have to withdraw each year.
At the same time, you won't have to withdraw more than you need due to RMDs, so you can keep the account growing tax-free. 2. Those who inherited IRAs since 2020 can avoid taking RMDs in 2024