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LISTEN, UNDERSTAND, RESEARCH, HELP. Money management has a new reality. Financial-planning efforts must consider “the whole client.” We offer a multi layer approach that starts with education. We strive to gain your trust then deliver the results you seek. At Gelinas Financial Group, Inc., our passion is supporting our clients by adding value: You need information to make correct decisions. We’ll help you achieve higher levels of success and better process management through cutting-edge solutions, training, mentoring, and continuing education. Our objectivity and independence mean you get the financial-planning and risk-management solutions that meet the unique demands of your present situation. We offer our expertise in the following areas: Financial Planning Retirement Planning Insurance Investment Coaching Annuities More Hope is not a strategy. We meet with our clients regularly to scrutinize their investments and make adjustments.
Beneficiaries IRA Requirements
Gelinas Financial Group, Inc., GA, Multi Year Guaranteed AnnuitiesOne thing many people do not know is that IRAs can be inherited from individuals who are related to the account holder. People who are not familiar with the rules are often confused on how to handle inherited IRAs. Here are some tips on what beneficiaries have to do for the IRA requirements to be satisfied. There are three categories of relationship between the inheritor and the deceased original owner of the IRA. These categories are spouse inheritors, non-spouse inheritors like children, siblings, a friend of the owner, and entity inheritors like a trust, estate, or non-profit organizations. For all relationship categories, they are all required to withdraw from the IRA but at the same time begin taking the distributions as well or the MRDs. Usually, an inheritor must begin taking MRDs for inherited IRA assets by December 31 of the year after the year of the owner's death. Those who fail to take the MRDs will be penalized with 50% of the amount that should have been withdrawn at that time. For spouses, they have better options than the rest of the inheritors. They have a choice of rolling over the assets into their own IRA if they have one. A spouse can also transfer the assets into an inherited IRA just like any other type of beneficiary is permitted to do. For non-spouses, they have to begin taking MRDs from inherited assets starting from the year after the year of death of the past owner. Non-spouse beneficiaries must also directly roll over the inherited assets to an Inherited IRA in their own names only. Trusts and other entities are another issue. If the previous owner was still living by April 1 of the year following age of 70 ½, the distributions will be based on the remaining single life expectancy of the IRA owner. If he or she was younger than the required age, the assets will be distributed completely by December 31 of the 5th year after the owner's year of death. The requirements for IRA beneficiaries can differ depending on the relationship between the owner and the beneficiary. Spouses have better options than the rest. Trusts and other entities will have to depend on the circumstances of the previous owner. Sources: https://www.fidelity.com/retirement-planning/learn-about-iras/inherited-ira-mrd http://www.forbes.com/sites/deborahljacobs/2013/05/01/inherited-ira-rules-what-you-need-to-know/ http://www.forbes.com/forbes/2010/0628/investment-guide-stretch-ira-beneficiary-five-rules-inherited-iras.html https://www.fidelity.com/retirement-ira/inherited-ira/overview http://www.schwab.com/public/schwab/investing/retirement_and_planning/understanding_iras/inherited_ira
Shawna Kreis
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