Category - IRAs

1
IRA Options Between Ages 60 and 70
2
Using a Roth IRA for Retirement and Emergency Savings
3
Fixing An IRA With The “Wrong” Beneficiary
4
How An IRA Is Treated When A Beneficiary Dies
5
IRAs And Medicaid

IRA Options Between Ages 60 and 70

There are lots of articles around that speak to what you can and cannot do with your IRA before you reach age 59½, and more that address what you must or must not do with your IRA after you’ve reached age 70½.  But what can you do in the interim period?  Surprisingly, you have all the control you may wish for.

After you’ve reached age 59½, you are free to take withdrawals from your traditional IRA with no penalties.  You will have to pay tax on any withdrawal from the IRA, but otherwise there’s no downside to taking money out …

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Using a Roth IRA for Retirement and Emergency Savings

For a while now standard financial planning advice has been that you need emergency savings that would cover 6-12 months of expenses. And of course, all financial experts stress the importance of starting to save for retirement as soon as possible. If you are trying to decide whether to concentrate on building up your emergency savings or increase retirement savings, there may be away for you to do both.

The Seattle Times discusses how you can “use a Roth individual retirement account to kill two birds with one stone, because both an emergency fund and retirement savings are critical.”

Putting …

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Fixing An IRA With The “Wrong” Beneficiary

Quite often, for many different reasons (often known only to the deceased original owner), the original owner of an IRA designates a beneficiary that the survivors don’t necessarily agree with. It might be that only one of several children is designated, or perhaps additional beneficiaries are designated along with a spouse.  In cases like these, there are ways to make changes to the outcome of the inheritance.  In this article we specifically deal with the case where only one of four children was designated as the primary beneficiary of the IRA.

To resolve the situation, let’s consider the following IRA: …

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How An IRA Is Treated When A Beneficiary Dies

When an IRA owner dies while the IRA still has funds in it, the primary beneficiary(ies) have the opportunity to transfer the account to an inherited IRA and begin taking the Required Minimum Distributions (RMDs) over his or her lifetime. When this primary beneficiary dies, it can be difficult to figure out who the money goes to. This is known as the successor beneficiary.

It’s important to know the difference between a successor beneficiary and a contingent beneficiary. A contingent beneficiary takes the place of the primary beneficiary in the event that the primary beneficiary dies before the original owner …

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IRAs And Medicaid

When it comes to IRAs and Medicaid eligibility the question that gets asked is, “How does my IRA affect my eligibility for Medicaid?”

Many states share similar guidelines when it comes to exempt and non-exempt assets in IRAs. Essentially, it boils down to this: if the IRA is not in payout status (the IRA owner is not taking required minimum distributions) then the assets in the IRA are included (non-exempt) in the determination of eligibility. However, if the IRA is in payout status and the owner is now taking required minimum distributions (RMDs) the total amount of the IRA is …

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