Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why "thanks Trump"? This money has never been taxed, it's always the law that pre-tax funds get taxed when withdrawn, has nothing to do with who is president.

The SECURE Act of 2019 put a ten year time limit on withdrawing from inherited IRAs. Before that law, you could stretch the withdrawals out more. This hurts people who inherit money when they are younger and are still working.

Meh, it prevents the money from remaining untaxed for decades. If op had her way, she’d just pass it on to her own kids as an inheritance some forty-odd years from now. I inherited an IRA from my father and I think 10 years is plenty of time to distribute the funds.

No if I had my way I could at least wait until 65 to take the money out instead of being punished for the fact that I happened to inherit money in my peak early years vs when I was approaching retirement. I make a lot more than my parents ever did so this money is being taxed at a much higher rate than if my parents hadn’t put it in a 401K.

IRAs were never meant to be for generational wealth transfer. The old way money could be passed for generations and never taxed. I am sorry it's not optimal for you but I think it's a good policy. Remember you only pay the higher rates on part of your income.

I at the very bottom of the top income bracket so each dollar from the inherited IRA will be taxed at the highest rate. We do t have to debate tax policy (I agree the old rules were bonkers) I am just trying figure out how to structure this.

There’s not much you can do about the RMD.

If the money is enough, your age is advanced enough, or your career is flexible enough, you can time withdrawal of the majority to a year(s) when you won’t have other earned income.

Anonymous wrote:Just for clarification, inherited Roth IRAs or Roth 401ks are not taxed to the beneficiary when the funds are withdrawn and the beneficiary has 10 years to withdraw.

But when those accounts—like mine—were created, there was no 10-year withdrawal requirement.

Anonymous wrote:I inherited a lot of money in IRAs but it was before the new law so I only take RMDs every year. Additionally, I have a trust I have to take additional required distributions from annually. Here is what I/we do:

- all distributions are kept separate and go into my own accounts in my own name

- I pay the portion of the taxes attributable to these separate distributions from my separate property.

Have you verified this approach with a lawyer to make sure your spouse can't come after you for those accounts at a later date? Seems to me that you will need to keep detailed accounting and records of all transactions related to those accounts..

Anonymous wrote:Just for clarification, inherited Roth IRAs or Roth 401ks are not taxed to the beneficiary when the funds are withdrawn and the beneficiary has 10 years to withdraw.

This is because the person who put the money put in after-tax income, whereas a 401K is pre-tax income so you owe when it’s taken out.

Just for clarification, inherited Roth IRAs or Roth 401ks are not taxed to the beneficiary when the funds are withdrawn and the beneficiary has 10 years to withdraw.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why "thanks Trump"? This money has never been taxed, it's always the law that pre-tax funds get taxed when withdrawn, has nothing to do with who is president.

The SECURE Act of 2019 put a ten year time limit on withdrawing from inherited IRAs. Before that law, you could stretch the withdrawals out more. This hurts people who inherit money when they are younger and are still working.

Meh, it prevents the money from remaining untaxed for decades. If op had her way, she’d just pass it on to her own kids as an inheritance some forty-odd years from now. I inherited an IRA from my father and I think 10 years is plenty of time to distribute the funds.

Not “meh”
Ad usual Trump sucks at finances maga cult of can not do math

Sorry, not a ton of sympathy. An IRA is intended as a vehicle for retirement savings, not passing down an inheritance with untaxed money.

Exactly. Oh boo hoo you only get...$2 million.

I’m a democrat (mostly for social values), but I think it’s absurd. Unless it’s a traditional 401k that was never taxed (then I agree withdrawals should be taxed at the rate of whomever is withdrawing it) but for a Roth 401k or anything that’s already been taxed, it should be able to passed on exactly how the holder intended. Like, boohoo, the government will only get to tax the money once!

Don’t have advice, but I’m sorry for your loss

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why "thanks Trump"? This money has never been taxed, it's always the law that pre-tax funds get taxed when withdrawn, has nothing to do with who is president.

The SECURE Act of 2019 put a ten year time limit on withdrawing from inherited IRAs. Before that law, you could stretch the withdrawals out more. This hurts people who inherit money when they are younger and are still working.

Meh, it prevents the money from remaining untaxed for decades. If op had her way, she’d just pass it on to her own kids as an inheritance some forty-odd years from now. I inherited an IRA from my father and I think 10 years is plenty of time to distribute the funds.

No if I had my way I could at least wait until 65 to take the money out instead of being punished for the fact that I happened to inherit money in my peak early years vs when I was approaching retirement. I make a lot more than my parents ever did so this money is being taxed at a much higher rate than if my parents hadn’t put it in a 401K.

IRAs were never meant to be for generational wealth transfer. The old way money could be passed for generations and never taxed. I am sorry it's not optimal for you but I think it's a good policy. Remember you only pay the higher rates on part of your income.

I at the very bottom of the top income bracket so each dollar from the inherited IRA will be taxed at the highest rate. We do t have to debate tax policy (I agree the old rules were bonkers) I am just trying figure out how to structure this.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why "thanks Trump"? This money has never been taxed, it's always the law that pre-tax funds get taxed when withdrawn, has nothing to do with who is president.

The SECURE Act of 2019 put a ten year time limit on withdrawing from inherited IRAs. Before that law, you could stretch the withdrawals out more. This hurts people who inherit money when they are younger and are still working.

Meh, it prevents the money from remaining untaxed for decades. If op had her way, she’d just pass it on to her own kids as an inheritance some forty-odd years from now. I inherited an IRA from my father and I think 10 years is plenty of time to distribute the funds.

No if I had my way I could at least wait until 65 to take the money out instead of being punished for the fact that I happened to inherit money in my peak early years vs when I was approaching retirement. I make a lot more than my parents ever did so this money is being taxed at a much higher rate than if my parents hadn’t put it in a 401K.

IRAs were never meant to be for generational wealth transfer. The old way money could be passed for generations and never taxed. I am sorry it's not optimal for you but I think it's a good policy. Remember you only pay the higher rates on part of your income.

I have federal taxes removed on my annual RMD. During the setup, I was able to select a % to withhold. For the RMD, I received an annual payment and I deposit in a separate account.

In addition, my sister died a year ago and my portion of the Inherited Roth IRA is under the 10 year Secure Act regulations. (I need to cash out the entire amount within 10 years). I think this is because she is my sister vs parent (direct family lineage).

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why "thanks Trump"? This money has never been taxed, it's always the law that pre-tax funds get taxed when withdrawn, has nothing to do with who is president.

The SECURE Act of 2019 put a ten year time limit on withdrawing from inherited IRAs. Before that law, you could stretch the withdrawals out more. This hurts people who inherit money when they are younger and are still working.

Meh, it prevents the money from remaining untaxed for decades. If op had her way, she’d just pass it on to her own kids as an inheritance some forty-odd years from now. I inherited an IRA from my father and I think 10 years is plenty of time to distribute the funds.

Not “meh”
Ad usual Trump sucks at finances maga cult of can not do math

Sorry, not a ton of sympathy. An IRA is intended as a vehicle for retirement savings, not passing down an inheritance with untaxed money.

Take it up with the guys who wrote the tax code. They gaveth and Trump tooketh away—to fund a tax cut for billionaires.

Also you’re flat-out wrong about this as pertains to Roths.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why "thanks Trump"? This money has never been taxed, it's always the law that pre-tax funds get taxed when withdrawn, has nothing to do with who is president.

The SECURE Act of 2019 put a ten year time limit on withdrawing from inherited IRAs. Before that law, you could stretch the withdrawals out more. This hurts people who inherit money when they are younger and are still working.

Meh, it prevents the money from remaining untaxed for decades. If op had her way, she’d just pass it on to her own kids as an inheritance some forty-odd years from now. I inherited an IRA from my father and I think 10 years is plenty of time to distribute the funds.

It’s plenty of time unless you are 18 at the death.

Anonymous wrote:

Anonymous wrote:Why "thanks Trump"? This money has never been taxed, it's always the law that pre-tax funds get taxed when withdrawn, has nothing to do with who is president.

The SECURE Act of 2019 put a ten year time limit on withdrawing from inherited IRAs. Before that law, you could stretch the withdrawals out more. This hurts people who inherit money when they are younger and are still working.

Can everyone hear the world’s tiniest violin playing?

Anonymous wrote:The IRA has been transferred into an account in my names I have to withdraw each year into a different account in my name and will pay income taxes on it. Any money transferred into our joint checking account will be considered co-mingled.

Pay taxes on it with the money withdrawn.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why "thanks Trump"? This money has never been taxed, it's always the law that pre-tax funds get taxed when withdrawn, has nothing to do with who is president.

The SECURE Act of 2019 put a ten year time limit on withdrawing from inherited IRAs. Before that law, you could stretch the withdrawals out more. This hurts people who inherit money when they are younger and are still working.

Meh, it prevents the money from remaining untaxed for decades. If op had her way, she’d just pass it on to her own kids as an inheritance some forty-odd years from now. I inherited an IRA from my father and I think 10 years is plenty of time to distribute the funds.

Not “meh”
Ad usual Trump sucks at finances maga cult of can not do math

Sorry, not a ton of sympathy. An IRA is intended as a vehicle for retirement savings, not passing down an inheritance with untaxed money.

Exactly. Oh boo hoo you only get...$2 million.