Quote:
Originally Posted by CoachKandSportsguy
The biggest change for resident's of the villages is the RMW extension to 72. The downside is more for the heirs of your retirement account/s. Heirs of retirement accounts have a much shorter time period to exhaust the account. Assuming that your financial assets are in trusts, which pass mostly tax free to the beneficiaries, the best answer is to draw down the retirement account first before using any taxable income for expenses to avoid heirs having to pay additional income taxes
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The SECURE Act eliminates the current rules that allow non-spouse IRA beneficiaries to "stretch" required minimum distributions (RMDs) from an inherited account over their own lifetime (and potentially allow the funds to grow tax-free for decades). Instead, all funds from an inherited IRA generally must now be distributed to non-spouse beneficiaries within 10 years of the IRA owner's death.
This means that if my sisters and I inherit any money from my father's IRA, we will have to take distributions within 10 years of his death -- correct? I am assuming these distributions would be taxable income -- correct? My sisters and I are all still working full-time if that makes a difference.