Avoid Costly Non-Spouse IRA Beneficiary Mistakes in Five Easy Steps

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If you inherit an IRA from a deceased loved one, it is crucial to know the complexities involved. Avoiding costly IRA beneficiary mistakes is crucial. Following the rules to manage the account effectively isn’t straightforward and varies depending on whether you are the deceased’s spouse, a non-spouse, or a trust beneficiary.

With many long-standing retirement rules for beneficiaries upended in recent years under the SECURE Act and SECURE 2.0, it’s critical to understand your options before making any decisions with inherited funds. Mistakes are often irreversible. Before moving an inherited IRA, read these quick tips toAvoid Non-Spouse Beneficiary Mistakes in 5 Easy Steps.”

Avoid Costly Beneficiary Mistakes

  1.  Don’t take any distributions until you have set up your own IRA for these inherited funds.
  2.  Prepare to take Required Minimum Distributions or RMDs. Most non-spouse beneficiaries under the SECURE ACT are subject to a 10-year payout rule, and there are penalties if RMDs are not taken.
  3.  Pay attention to deadlines and records. There are specific dates when your new IRA account must be established. Make sure you designate beneficiaries for your account as well.

Get more steps to avoid costly beneficiary mistakes by downloading our free guide.

Financial Success Doesn’t Happen by Chance.

Contact lead advisor Chris Robinson, ChFC, at our office, 940-464-4104, to schedule a time to discuss your current questions regarding your IRAs.

RFG Wealth Advisory in Argyle, Texas, is an independent, fee-only Registered Investment Advisor firm that always puts our client’s interests first. We have a transparent, simple fee structure that’s easy to understand. Call us today!

 

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Avoid Non-Spouse Beneficiary Mistakes in 5 Easy Steps

“These materials have been independently produced by RFG Wealth Advisory. RFG Wealth Advisory is independent of, and has no affiliation with, Charles Schwab & Co., Inc. or any of its affiliates (“Schwab”). Schwab is a registered broker-dealer and member SIPC. Schwab has not created, supplied, licensed, endorsed, or otherwise sanctioned these materials nor has Schwab independently verified any of the information in them. RFG Wealth Advisory provides you with investment advice, while Schwab maintains custody of your assets in a brokerage account and will effect transactions for your account on our instruction.”

Investment advice offered through RFG Wealth Advisory, a registered Investment advisor. FINRA/SIPC.


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