Distributions from a Roth IRA to the beneficiary are not taxed, but traditional individual retirement account distributions must be reported. All of the money in either type account must be distributed to the beneficiary within 10 years of the transfer. This is another detail that was changed when the SECURE Act was put into place. Account holders were previously allowed to take mandatory minimum distributions for an open-ended period of time. There was no ten-year mandate. … [Read more...] about What are the rules for the beneficiary of an inherited individual retirement account?
IRA and Retirement Planning
When the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 was passed, some new rules for individual retirement account holders were established. The primary difference is the way that taxes are paid. With a Roth individual retirement account, the contributions are made after taxes have been paid on the income. The reverse arrangement is in place with a traditional IRA. You can start to accept penalty free withdrawals from either account when you are 59 ½ years … [Read more...] about What is the difference between a traditional IRA and a Roth individual retirement account?
The exact age at which you can receive your full retirement benefit depends upon the year of your birth. People that were born between 1943 and 1954 become eligible at the age of 66. It then goes up by two months per year until 1960 when it tops out at 67 years of age. You do not have to wait until you reach this age to start to collect a benefit. If you are willing to accept a reduced benefit, you can file for your benefit when you are as young as 62. Depending on the year of your birth, … [Read more...] about What is the Social Security eligibility age?