Tag: Inherited IRA
Retirement Questions You Should Answer Before It’s Too Late (Ep. 51)

Retirement Questions You Should Answer Before It’s Too Late (Ep. 51)

By |

How much cash should you keep on hand? When should you begin planning for long-term care? What happens when you inherit an IRA? 

These are the kinds of financial questions many people don’t ask until they’re facing an important decision.

In this episode, Jim Sumpter, CFP®, walks through several of the retirement planning topics clients bring up most often. He explains how to think about emergency funds, why long-term care planning starts with a conversation long before care is needed, how to balance cash with long-term goals, what inherited IRA beneficiaries need to know about distribution rules, and why preparing before life changes often creates more flexibility later.

Key takeaways:

  • Building an emergency fund based on household spending instead of a fixed dollar amount
  • Preparing for long-term care through insurance, personal savings, or a combination of both
  • Evaluating how much cash belongs in conservative accounts versus long-term investments
  • Understanding inherited IRA distribution rules after changes to federal legislation
  • Matching financial decisions to future goals instead of reacting after life changes occur
  • And more!

Resources:

Connect with Jim Sumpter: 

Podcast: Play in new window | Download | Embed

Subscribe: RSS | More
You Inherit an IRA, Now What? (Ep. 12)

You Inherit an IRA, Now What? (Ep. 12)

By |

Could your financial future hinge on choosing the right path after inheriting a retirement account?

In this episode, Jim Sumpter provides insights and guidance on the nuanced rules and changes surrounding the inheritance of retirement accounts such as IRAs and 401(k)s. If you’ve recently found yourself as a beneficiary, understanding your options with inherited retirement accounts is crucial. Navigating the complex rules surrounding IRA inheritances can be daunting, with changes galore post-2020. Jim breaks it all down with real-world scenarios, helping you make informed financial decisions and avoid unnecessary pitfalls.

Jim Sumpter, CFP®, discusses: 

  • (01:10) Introduction to IRAs and inheritance rules
  • (02:47) Differences between spousal and non-spousal beneficiary rules
  • (03:11) Important strategies for handling required minimum distributions (RMDs)
  • (16:52) Clarifications on the post-2020 ’10-year rule’ for non-spousal IRA inheritance
  • (24:53) The significance of state taxes in IRA inheritance
  • (27:57) Unique challenges when inheriting an IRA as a minor
  • And more

Join us for this enlightening conversation to uncover how to strategically approach inheritance distributions while considering tax implications, ensuring you’re not left piecing your financial future together in the dark!

Connect with Jim Sumpter: 

Podcast: Play in new window | Download | Embed

Subscribe: RSS | More