Wisdom to Wealth- Tuesday, June 8
John Halterman: The Secure Act definitely made big changes to beneficiary IRAs. And there’s a couple things I want to clarify. You know, before the beneficiary IRA had a full lifetime in order to be able to take out the money they’ve received in an inheritance in an IRA. Well, now that’s changed. The biggest change is that now you have to take it out over a 10-year period. Now, let me clarify. You do not have to take it out in payments. You can actually take it out after the end of the ten years, if you want. Now, the reason why people typically will take it out in payments, or plan to take it out in payments, is simply because they don’t have to pay the entire tax all at one time. Because you have to realize, the IRA has never been taxed. And so, when you take it out, it’s going to be taxed as ordinary income as you take it. For more answers, call or visit our website today.
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