Do you happen to have after-tax money in your 401k or 403b, assuming the fees and expenses in the IRAs are comparable to the 401k or 403b? Then, a rollover might be beneficial. In Notice 2014-54, the IRS provided the option for an individual to roll over their pre-tax retirement
The breakeven point for someone whose full retirement age (FRA) is age 66 but who takes Social Security at 62 is age 78. After that age, the total payments received would have been larger if they had waited until age 66 to start their payments.
The most significant change, though, is how it treats non-spouse beneficiaries. Previously, non-spouse beneficiaries could “stretch” their required withdrawals over their lifetime. For example, a 40-year-old successful doctor who received a substantial sum from their mother’s IRA could take their required amount over their lifetime.
Soon investors will be getting their 2019 mid-year 401(k), 403(b), or IRA performance reports. As markets are wont to do, last year’s poor performers—stocks, high-yield bonds, longer-term bonds—reversed course and are this year’s winners, reaffirming that the one free lunch available to investors is diversification. Reviewing Your Accounts Do’s and
When someone inherits an IRA, the particular relationship between the individual who passed away and the beneficiary dictates the available choices. When the spouse is the sole beneficiary, that person can either remain a beneficiary or become the owner of the IRA.