Inherited & Stretch IRA Basics

The information I am providing is my opinion and not necessarily that of my firm or this platform.  I am only providing general educational information and not any customized investment recommendations. You should consult with your Financial Advisor, Tax Advisor or Attorney on your specific situation. Nothing shall be construed as Financial, Tax or legal advice or recommendations.

The Secure Act has brought significant changes to the landscape of inherited IRAs, most notably with the implementation of a 10-year rule for non-spouse beneficiaries. This rule requires that the entire balance of an inherited IRA be withdrawn within a decade, necessitating strategic tax planning to avoid unnecessary tax burdens. Kris Flammang and Collin Habig, both experts in financial planning, stress the importance of understanding this new regulation and the necessity of spreading distributions over the 10-year period. Their perspectives are shaped by their extensive experience in advising beneficiaries to manage taxable income efficiently, ensuring compliance with the updated rules. Both Flammang and Habig advocate for consulting with tax professionals or financial advisors, highlighting the complexity of the Secure Act and the need for proactive planning to maximize financial benefits.

Here’s what to expect this episode:

• Tax planning is crucial to navigate the new rules introduced by the Secure Act for non-spouse beneficiaries of inherited IRAs.
• Beneficiaries must determine their beneficiary type and consult professionals to create a distribution strategy that complies with the regulations and minimizes tax implications.

Connect with Collin Habig

https://www.linkedin.com/in/collinhabig/

Connect with Kris Flammang

https://www.linkedin.com/in/kristopher-flammang-lpfadv/

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