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4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for “4 Your Money.” We’re joined by James Nelson, financial advisor at NelsonCorp Wealth Management. Welcome back, James.
James Nelson:
Thanks, Brandy.
Brandy Auterson-Hurst:
There have been a lot of changes to retirement account rules since the SECURE Act came onto the scene in 2019. What developments do you think are important for viewers to keep an eye on?
James Nelson:
Yeah. We had the SECURE Act in 2019, and then, the so-called SECURE 2.0 in 2022. It seems like a lot of that legislation was rushed. We were left with… A lot of things were ambiguous. We now have a situation where we’re left to rely on the IRS interpretations as guidance. One area that’s left a lot of uncertainty is the inherited IRA space, and we’ve got a chart, here, that lays out a few these options. The SECURE Act changed the way that beneficiaries can inherit an IRA. We used to be able to [inaudible 00:01:01] over a lifetime. Now, that’s been limited to 10 years for non-spousal beneficiaries. We also have this ongoing debate, whether there’s a required minimum distribution through that 10-year timeframe, or if we can wait until the end, and take all the money out at once. This still isn’t settled. The IRS has waived that for now. In 2023, we get a pass on that and kick the can down the line, but there’s still a lot of questions there, and it hasn’t totally been ironed out quite yet.
Brandy Auterson-Hurst:
Okay. Do these rules impact all retirement accounts that get passed onto beneficiaries?
James Nelson:
That’s a good question. Not all beneficiaries, spouses, like I said, play by a little bit different set of rules. Spouses are allowed to continue that stretch. They can either move that money into their own IRA, or they can leave it in the inherited IRA, but they are not subject to that 10-year window. They do have that ability to stretch it over their lifetime.
Brandy Auterson-Hurst:
All right, James. As always, thanks for joining us today.
4 Your Money is a production of NelsonCorp Wealth Management in Clinton and Davenport. The opinions voiced in the show are for general information only and are not intended to provide specific advice or recommendations for any individual. Any indices mentioned are unmanaged and cannot be invested into directly. Registered representative. Securities offered through Cambridge Investment Research Incorporated, a broker dealer member of FINRA SIPC. Investment advisor representative, Cambridge Investment Research Advisors Incorporated, a registered investment advisor. Cambridge and NelsonCorp Wealth Management are not affiliated. Cambridge does not offer tax advice. For more information, visit our website at www.nelsoncorp.com.