Explaining Penalty Relief for Inherited Withdrawals

While the stretch IRA has been gone for a few years now, a new tweak in the rules has added some confusion. On today’s episode, we discuss what this may mean for inherited IRAs and look at a recent article from CNBC to break it down.
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Confidence Corner

While the stretch IRA has been gone for a few years now, a new tweak in the rules has added some confusion. On today’s episode, we discuss what this may mean for inherited IRAs and look at a recent article from CNBC to break it down. Currently, there is a 10-year rule to withdraw from an inherited IRA account, but the IRS is allowing a penalty relief in 2024 to certain heirs considered “non-eligible designated beneficiaries” as they work to figure it out.

Nathan shares what he thinks about this relief and why you should pay close attention to it. What might seem like relief now could cost more later if you wait until the tax brackets likely increase in 2026. Work with an advisor to liquidate your inherited accounts in the most strategic way possible.

Here’s some of what we discuss in this episode:

  • What the IRS did in 2024 about inherited withdrawals.
  • What the tax implications could be in the future.
  • If you should get a Roth conversion.

CNBC article: https://www.cnbc.com/2024/04/19/irs-waives-required-withdrawals-from-some-inherited-ira-for-2024.html

A Point Of Wisdom:

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YOUR HOST

Nathan O’ Bryant is the founder of O’Bryant & Associates, Inc., a Registered Investment Advisory firm in the state of TN. He’s been helping people plan for retirement and their financial futures for more than 15 years.

The weekly podcast features discussion and excellent guidance on the important financial planning questions we all have. Whether it’s tax planning, retirement income, social security or the stock market, you’ll find that no topics are off limit on this show.

YOUR HOST

Nathan O’ Bryant is the founder of O’Bryant & Associates, Inc., a Registered Investment Advisory firm in the state of TN. He’s been helping people plan for retirement and their financial futures for more than 15 years.

The weekly podcast features discussion and excellent guidance on the important financial planning questions we all have. Whether it’s tax planning, retirement income, social security or the stock market, you’ll find that no topics are off limit on this show.

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