A spouse beneficiary must be married to the account owner at the time of the account owner’s death, and he or she must be named on the beneficiary form (or inherit directly through the document default provisions). A spouse beneficiary has a number of unique options. 1. Split the inherited account if necessary. A spouse beneficiary can take advantage of the special spousal rules if they are the sole beneficiary of an IRA account.
Can children have IRAs? There is no minimum age for having an IRA. Due to the power of compound interest, saving tax-free in an IRA from childhood can provide a significant head start on financial security. Saving $6,000 in an IRA annually from age 14 through 24 and earning 7% per year provides $1.16 million at age 61—even without contributing after age 24!
A Health Savings Account is a tax-advantaged medical savings account that helps people pay for qualified out-of-pocket medical expenses. What are the withdrawal rules for HSAs? Are there special considerations that must be taken into account?
An RMD is the minimum amount that must be withdrawn from a retirement account each year. The SECURE Act replaces annual RMDs with a 10-year payout period for most nonspouse beneficiaries who inherit in 2020 or later.
Trick-or-treating in the time of a pandemic is a challenge. Social distancing while handing out candy requires some creativity. The Slott Report and Eastern Planning Inc. has elected to place a big bowl of random treats in front of our house for the kids to pick from.
For trusts that inherited an IRA in 2019, an important deadline is approaching. October 31, 2020 is the due date to provide required trust documentation to the IRA custodian to ensure that the longest payout period possible is available for the inherited IRA.