Vincent D’Amato: Senate bill puts workers into IRAs
Retirement continues to be a distant and perhaps fleeting concept for many people. I must say that I have never seen as many hardship withdrawals from IRAs, 401(k)s, 403(b)s and related accounts as I have seen these past several months.
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An over 70 year-old died and left three IRAs to her living trust. The spouse is dead and there are 11 beneficiaries ranging in age from 30 to 85. Can we A) Sell the assets and pay the tax at the trust level? B) Combine the three IRAs and pass the minimum distribution out over X years? C) have the bank create 11 IRA beneficiary accounts and let the beneficiaries decide?
Don’t worry about me. I know how to research the tax law and the bank won’t let me do something illegal. I was just looking for ideas.
An over 70 year-old died and left three IRAs to her living trust. The spouse is dead and there are 12 beneficiaries ranging in age from 30 to 85. Can we A) Sell the assets and pay the tax at the trust level? B) Combine the three IRAs and pass the minimum distribution out over X years? C) have the bank create 11 IRA beneficiary accounts and let the beneficiaries decide?
My research tells me I can do any one of the above under the trust, but Extra37′s insight on the age range makes me prefer C. The bank can take it from there.
The difference between a Roth IRA and a traditional IRA is that a Roth IRA taxes contributions, while a traditional IRA has tax-free contributions, but may require taxes upon withdrawal. Consider whether taxes will be more or less in the future to decide between traditional and Roth IRAs withadvice from a financial adviser in this free video on individual retirement accounts. Expert: William Rae Contact: www.hbwfl.com Bio: William Rae has been licensed in the insurance and financial fields for more than 30 years. Filmmaker: Christopher Rokosz
Withdrawing an IRA fund early generally requires paying penalties, as well as taxes on the money in the account and any growth that has occurred. Once a person has reaches 59 and a half years of age, there are no penalties for withdrawing IRA funds. Find out about hardships that might allow a person to withdraw an IRA early with information from aninvestment portfolio manager in this free video on retirement funds. Expert: Gregory Bramwell-Smith Bio: Gregory Bramwell-Smith is the relationship and portfolio manager at Bramwell-Smith Associates. Filmmaker: David Pakman
