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JoesterVT

Joined: 10/21/2005 Posts: 41974
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What's this?

What do youze guys know about inherited IRAs?


So, the wife is inhereting a small IRA that her mother had. Not a huge account, but not insignificant either. The family's guy is recommending we put this is n an "inherited IRA". I've read up on this, and I think I understand the basics. One key takeaway is that we have to withdraw the money within 10 years. And as far as I can tell, this will be taxed like regular income and incur no penalties or fees to take withdrawals. All that sound correct so far?

My gut is wanting to take all this money now. There's enough to pay off the house and cover the taxes (I think). It will essentially double our income for 2022.

So the downside I see is the increased tax hit for 2022, and also likely kick us out of any future stimulus or child tax credit in the future. I don't think there will be a ton of that stuff going forward but who knows.

Teach me up O Wise Lounge. And Thanks!

Posted: 12/29/2021 at 12:28PM


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Current Thread:
 
  What do youze guys know about inherited IRAs? -- JoesterVT 12/29/2021 12:28PM
  Google must be listening. I just got an email from TD Ameritrade... -- Spud 12/30/2021 10:02AM
  I've been receiving inherited IRA payouts for many years. -- Full-Set and Moonshine 12/29/2021 6:56PM
  Yes, tax laws changed. It is 10 years to take out if not a married spouse -- VaTechie 12/29/2021 10:09PM
  To take all of it ? ** -- Full-Set and Moonshine 12/29/2021 10:50PM
  Yes, 10 years to take all of it out -- VaTechie 12/29/2021 10:55PM
  Good to know ** -- Full-Set and Moonshine 12/29/2021 11:06PM
  Do you trust your wife? ** -- HokieDan95 12/29/2021 5:29PM
  Can you wirhdraw the IRA over 10 years and pay off the mortgage -- Baltimore Hokie 12/29/2021 1:47PM
  Certainly...and I only have about 5 years left on the mortgage anyway -- JoesterVT 12/29/2021 1:53PM
  Would say do calculations -- HokieForever 12/29/2021 2:03PM
  Will add instead of making an extra payment each year -- HokieForever 12/29/2021 2:08PM
  Oh- shun ** -- bigbadbird 12/29/2021 1:27PM
  Inside -- FfxStationHokie 12/29/2021 1:30PM
  I think you can take it out over a number of years- which could defer taxes -- bigbadbird 12/29/2021 1:11PM
  First qs pp1 are right. The other is whatever works. Rest assured at some -- ColoVT82 12/29/2021 12:55PM
  My wife got an inherited IRA too (inside) -- FfxStationHokie 12/29/2021 12:47PM
  Your basic understanding is pretty much correct -- Hokerer 12/29/2021 12:41PM
  Would also add using some back of the napkin math -- HokieForever 12/29/2021 2:02PM
  Also how much home interest from a payoff is saved vs taxes paid ** -- coshokie 12/29/2021 1:31PM
  I get that, but my thought is this... -- JoesterVT 12/29/2021 1:39PM
  Yet you have this IRA which IS that investment -- 133743Hokie 12/29/2021 2:08PM
  Agree, that's a great place to be in ** -- coshokie 12/29/2021 1:51PM
  Where can I find info on the tax brackets? ** -- JoesterVT 12/29/2021 12:46PM
  Lots of places, link inside -- Hokerer 12/29/2021 12:52PM
  Thanks! ** -- JoesterVT 12/29/2021 1:09PM
  Nothing. If you need help with IPA's, let me know. ** -- vt90 12/29/2021 12:31PM
  Yeah. Always take an IPA. ** -- HokieR 12/29/2021 1:32PM

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