Summit Wealth Logo Light

The IRS Deals A Blow To Inherited IRAs And This Could Be A Trap For Many

Up until 2019, IRA holders did not have to take money out of their IRAs – and pay taxes on those distributions – until they turned a certain age (which is currently 72 for those born after 1949) regardless of whether their IRAs were their own or inherited. Because of this, someone could name a beneficiary who was much younger – a grandchild, for example – and keep wealth untaxed for generations. This estate-planning technique was known as the “stretch IRA.”

Keep a Lid on Social Security Taxes and Medicare Costs. Consider Roth IRA Conversions.

If you’ve become a 401(k) millionaire or amassed large sums in other tax-deferred retirement accounts, you can potentially shave your lifetime taxes by hundreds of thousands of dollars by converting part of it to a Roth IRA before you start collecting Social Security. But figuring out how much to convert—and when—is a tricky exercise.

Retiring Early? Avoid The Early Penalty Tax

Many people are retiring early. The St. Louis Federal Reserve reported that upwards of 3 million Americans retired early due to the COVID-19 pandemic.

Schedule A Call

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aliquam sit amet congue lorem, et pulvinar risus.