Inheriting Retirement Assets: A College Guide

Navigating Inherited Retirement Assets: A Guide for College-Aged BeneficiariesA mother inherits a significant amount from a four hundred one K, intending to use it for her college-aged childrens future home purchases. The podcast discusses the complexities of inherited retirement assets, especially with recent changes from the Secure Two point Zero Act. Beneficiaries have three choices: transfer the assets into an inherited IRA, use the ten-year distribution method, or take a lump sum. If the original account owner had already begun taking required minimum distributions, beneficiaries must also take annual distributions, starting the year after the owners death. A strategy suggested is for beneficiaries to take one or more lump-sum distributions while in college to avoid higher income tax brackets. However, its important to consider the impact on financial aid eligibility. Investing wisely now could lead to substantial growth over two decades.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.