If you’ve ever thought about leaving money behind to your spouse, someone you love, or a generous cause, then you now have another reason to appreciate a Roth IRA over other types of retirement accounts. One of the little known benefits of a Roth IRA is that you can designate it to someone after you die without having to pay estate taxes on it (so long your estate is valued under the taxable inheritance minimum). Although that may sound like a small perk, it really can be a very important factor in your future estate planning! … [Read more...]
How Many Beneficiaries Can You Have?
Part of any good retirement plan is making sure your loved ones will be taken care of after you have passed on. When you take out a life insurance policy, final expenses insurance, or any form of insurance you will have to name at least one beneficiary. This is the person who receives the payout should you die. This is a decision you have to think extremely carefully about. However, there are some policies that allow you to name more than one beneficiary. This guide will discuss the issue of beneficiaries. Primary and Contingency Beneficiaries There are two types of beneficiaries. The first one is the primary … [Read more...]
Make the Beneficiary IRA Rules Work for You
If you are in a position to inherit an IRA from someone who has passed away, you need to know there are specific rules governing these accounts. You could end up paying a fortune in taxes if you do not know the beneficiary IRA rules. For instance, if you are the spouse of the IRA owner, you have different rules than if you are a non-spouse beneficiary. It might be a difficult time for you right now, but you have to make sure you understand how your loved one’s IRA funds are going to be handled so that you can get the most money possible in the exchange. Some of the beneficiary IRA rules are standard across the board, regardless of which … [Read more...]
Save Money on Taxes by Knowing the Inherited IRA Rules
If you are planning to leave your individual retirement account (IRA) to your kids or you are getting ready to inherit an IRA from a relative, you need to understand the inherited IRA rules to save them money on taxes. Otherwise, one wrong move could cost you or your heirs a ton of cash and turn your gift into somewhat of a financial burden. Your goal is to pass along as much of the account as you can to your heirs, so you’ll want to set them up to pay as little in taxes as possible. The best part of an IRA (like a 401k) is that it is a long-term tax shelter. This means that all the money you put into the account grows on a tax-deferred … [Read more...]
Use the Stretch IRA Rules to Protect Your Loved Ones
Many times, people do not outlive their retirement accounts. This means that there are funds still left in the accounts when the owner passes away. Of course, this means their retirement accounts did their job in providing the funds necessary for the owner to live on during retirement. But it also leaves some questions for the beneficiaries. Fortunately, there are ways to make sure your IRA funds can provide income to your heirs in the event that you pass away before you deplete your assets during your golden years. One of the best ways to do that is to transfer your funds using a multi-generational stretch IRA to one or more of your … [Read more...]