Page 29 - Southern Exposure - January '24

Southern Exposure, Page 29

FinanCial FoCus ®

Don’t Leave Your IRA To The IRS

By Sally Sima Stahl

If you’ve invested in an IRA for many decades, it may well the annual taxes due on these withdrawals. But the Secure their lifetimes and exceptions
turn into a key source of income for your retirement. Still, Act changed the provisions for non-spouse beneficiaries who exist for certain non-spouse
you might not deplete your IRA in your lifetime, especially inherited an IRA after 2019, meaning that beneficiaries of beneficiaries. Minor children
if you also have a pension or a 401(k) and other investment inherited IRAs had only 10 years (beginning the year after of the IRA owner (until the
income. So, if your IRA still has sizable assets after your death) to withdraw the entire balance. For some beneficiaries, age of majority), chronically
passing, it would likely end up in your estate plan. If you this could potentially create a tax burden. (Inheritors of Roth ill or disabled individuals,
leave your IRA to grown children or other family members, IRAs are also required to follow the 10-year distribution rule and beneficiaries who are no
could they be hit with a big tax bill? but are not subject to income taxes on account earnings if the more than 10 years younger
Here’s a little background: Up until the Secure Act of Roth IRA’s five-year holding period has been met.) than the IRA owner may opt
2019, those who inherited traditional IRAs could extend their However, not all beneficiaries were affected by the new to stretch their distributions.
required withdrawals over their lifetimes, which stretched out rules. Spouses can stretch their inherited IRA distributions over The new 10-year
requirement applies to IRAs
LET US HELP YOU changes to required minimum distribution (RMD) rules
inherited on or after Jan. 1, 2020. But due to confusion over
for some beneficiaries of inherited IRAs, the IRS waived

and 2022 and extended the RMD penalty waiver for 2023.
Ship Your Valuable Packages & Furniture penalties for individuals who failed to take RMDs in 2021
Although these rulings give beneficiaries – those not
eligible for the exemptions listed above – more time to plan,
they will eventually need to start taking RMDs, which could
• CLOTHING • SCULPTURES • CUSTOM PACKING AND CRATING affect their tax situations. To help protect your heirs, consider
• DISHES • ARTWORK • ESTATES PACKING AND these suggestions.
• Using permanent life insurance. A properly structured
• ANTIQUES • COMPUTERS SHIPPING permanent life insurance policy could help you replace the
• FURNISHINGS • FURNITURE SHIPPING • BOXES AND PACKING SUPPLIES assets your family might lose to the taxes resulting from an
inherited IRA. You might even consider naming a charity as
the beneficiary of an IRA, rather than your family members.
WE PACK AND FREE The charity would receive the IRA proceeds tax free, and
the life insurance could then provide tax-free benefits to
SHIP WITH TLC PICK UP AT YOUR your heirs.
LOCATION • Leaving taxable investment accounts to your heirs.
Apart from your tax-deferred IRA, you may own other, fully
taxable accounts containing investments such as stocks or
bonds. Typically, these investments receive what’s known
as a “step-up” in their cost basis once they are inherited.
This means your heirs will essentially inherit all the gains
your investments earned by the time of your passing – but
they won’t be taxed on these gains if they sell the assets
immediately. This type of sale could help offset the taxes
your heirs will incur from the inherited IRA.
The tax and investment issues surrounding inherited
IRAs can be complex, so consult with your tax and
financial advisors before making any moves. And, as with
Dishes, Glasses, Furniture many areas relating to inheritances, the sooner you start
planning, the better.
Copies, Fax Service, Notary, US Mail, Stamps This article was written by Edward Jones for use by
your local Edward Jones Financial Advisor, Edward Jones,
Member SIPC.
Edward Jones is a licensed insurance producer in all states
and Washington, D.C., through Edward D. Jones & Co., L.P.,
and in California, New Mexico and Massachusetts through
Edward Jones Insurance Agency of California, L.L.C.;
Edward Jones Insurance Agency of New Mexico, L.L.C.; and
Edward Jones Insurance Agency of Massachusetts, L.L.C.
Edward Jones, its employees and financial advisors cannot
Phone: 561-799-3900 provide tax advice. You should consult your qualified tax
10130 Northlake Blvd. #214 advisor regarding your situation.

West Palm Beach, FL. 33412 Fax: 561-799-3905 Contact us at (561) 748-7600, Sally Sima Stahl, AAMS,
1851 W. Indiantown Road, Ste. 106, Jupiter, FL 33458.
Cell: 561-598-4413

Ask For Jean or Joseph Southern Exposure Technologies
Computer Install/Setup/Repair
(561) 315-0144
The UPS Store The UPS Store getsetgo.annie@gmail.com
* DSL, Broadband,Wireless Install
* Networking, Troubleshooting
* Instruction
* Hardware/Software Installation
Show Your AAA 5¢ * Virus/Spyware/Adware Fix
* Cleanup/Maintenance/Backup
* Business Consult/Startup/Move
* Website Design/Maintenance
Card And Save Call S.E.T. to install your “new computer, printer
and wireless network”!
5% Off Shipping Copies FOR SMALL BUSINESSES FOR AS LOW AS $50.00 AN HOUR,
GET S.E.T. GO!
REASONABLE HOURLY, WEEKLY, MONTHLY RATES
15% Off Limit one coupon per customer. This offer is not OR 2 HOURS A WEEK, OR ON AN AS-NEEDED
WITH A MINIMUM OF 6 HOURS A MONTH,
BASIS RATE OF $75.00 P/HOUR.
START YOUR NEW YEAR WITH SECURE BACKUPS,
Packaging good in combination with any other offers. Valid QUALITY MAINTENANCE, ATTENTION TO DETAIL AND
at this location only. Restrictions apply. ©2004
PERSONABLE ON-SITE SUPPORT!
Mail Boxes Etc., Inc. (561) 315-0144
CALL S.E.T. TODAY FOR YOUR COMPUTER NEEDS!