Surviving the SECURE Act – Start planning for inherited IRAs

If you inherit a traditional IRA after the enactment of the SECURE Act, or expect to inherit an IRA in the future, you should consider having a plan in place for withdrawals to avoid a big tax bill.

Tax Liability

Since you have 10 years for the inherited IRA to grow tax-deferred, you may want to consider the nature of the assets held in the IRA, other income sources, and tax deductions available to you. You should also consider the timing of your distributions, as you may want to space out the distributions according to your income and available deductions. This will give you flexibility in managing your tax liability each year until the 10 years runs out.

Professional Help

It is important to consult with a professional who can help guide you and provide insight in order to come up with the best strategy that takes into consideration your tax liabilities, retirement goals, and estate and/or long-term care plan.

If you would like to speak with an experienced elder law attorney regarding your situation or have questions about something you have read, please do not hesitate to contact our office at 1 (800) 680-1717. We look forward to the opportunity to work with you.

Disclaimer: The information provided above is for general informational purposes only and is not legal advice.