Fixing the RMD Inheritance Problem | You Can Still Stretch an IRA! Here’s How to Protect Your Retirement for Your Spouse & Kids | Don’t Let RMDs Wreck Your IRA for Your Kids
Required minimum distributions (RMDs) do not have to become a retirement tax disaster—but the rules can create costly problems when an IRA or 401(k) passes to a spouse, child, or other beneficiary.
In this video, Certified Financial Planner, Joe Franklin explains how RMDs and inherited IRA rules work, including the 10-year withdrawal rule for many non-spouse beneficiaries. He also explores strategies that may help families avoid unnecessary taxes, preserve more of their retirement savings, and create a more tax-efficient legacy.
Topics Covered:
– When required minimum distributions begin
– Why withdrawing an inherited IRA all at once can create a large tax bill
– The difference between a spousal IRA rollover and an inherited IRA
– Who may qualify as an eligible designated beneficiary
– How the 10-year inherited IRA rule works
– When beneficiaries may be required to take annual distributions
– Using qualified charitable distributions to reduce taxable income
– How charitable lead and charitable remainder trusts work
– The differences between charitable annuity trusts and unitrusts
– Using Roth conversions during the retirement “golden window”
– Planning ahead to reduce taxes for a spouse, children, and other heirs
The right strategy depends on the beneficiary, the original account owner’s age, the type of retirement account, and the family’s broader financial goals. Thoughtful planning before and after an inheritance can make a significant difference in how much is ultimately lost to taxes.
