How to Calculate Life Expectancy Payments on Inherited IRA Assets

Financial organizations are not required to send notices to clients or report to the IRS when an annual payment must be taken from an inherited IRA. The beneficiary is responsible for knowing and taking any required life expectancy payments.

Although not required, many financial organizations assist their clients with this calculation.

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Understanding the RMD Delay: What Retirees Need to Know

The SECURE 2.0 Act has brought significant changes to retirement planning—especially for retirees aged 72 and older. One of the most significant updates is the delay for retirees to take required minimum distributions (RMDs), which now begin at age 73 (age 75 in 2033). While this offers flexibility, it also introduces new challenges that retirees should understand. 

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Successor Beneficiaries: What Are Their Distribution Options?

When an IRA owner dies, the assets are distributed to beneficiaries, whether named by the IRA owner or determined by IRA document defaults. This can sometimes be a complicated process for financial organizations. And further complications may arise when the original beneficiary dies, leaving the inherited IRA to a successor beneficiary.

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When an HSA Goes Negative: Why it Matters and How to Prevent it

Health savings accounts (HSAs) are designed to help people pay for qualified medical expenses, so it’s no surprise that there’s a lot of money going in and out of these accounts. To make it easier for account owners to pay for things like prescriptions or doctor visits, many financial organizations offer HSA debit cards or checks. While these tools add convenience, they can also create problems, especially when they lead to negative balances.

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Understanding RMDs for SEP Plans and SIMPLE IRAs

Just like Traditional IRA owners, an individual with a SEP plan can delay taking his first RMD until April 1 of the year after he attains age 73. This date is known as the required beginning date (RBD). But remember—if the SEP plan owner or participating employee delays taking his first RMD until the following year, he will need to take out two RMDs in the same year: the RMD for year one and the RMD for year two.

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