Dangerous Waters of Inherited Non-Spousal IRAs—Navigate Carefully

As you probably know, a traditional IRA is a wonderful tax-advantaged way to save for a secure retirement.

What you might not know is that the rules concerning the inheritance of a traditional IRA can be tricky. In fact, the smallest mistake can prove extremely costly.

This is especially true if you inherit an IRA from someone other than your spouse.

Want to make sure that you, your children, your parents, and others stay on the right side of the law? Read my new article Tax Tips: Dangerous Waters of Inherited Non-Spousal IRAs—Navigate Carefully!

Three ways our fact-filled article can help you:

1. We’ll explain important IRS rules. Uncle Sam cares a great deal about the date the grim reaper comes to call. Whether you inherit an IRA from an owner who dies before age 70 ½ or after 70 ½ makes a big difference. We’ll explain the IRS rules in easy-to-understand language when you read the full article.
2. We’ll provide you with an important tax-planning strategy. If you want to minimize the taxes your beneficiaries must pay, you should aim to stretch the distributions out for as long as possible. We’ll explain the reason behind “IRS stretching” when you read the full article.
3. You’ll learn why you should watch out for the dreaded “kiddie tax.” Yes. We love kiddies (and kitties too for that matter), but we hate the kiddie tax. It can apply the parent’s tax rate to the child’s unearned income. The kiddie tax applies when the child meets one of five criteria. We’ll tell you what they are when you read the full article.