First — and this is important — if
the original owner of the account did not make a required minimum distribution in the year that he or she died, you must make the distribution yourself.
The biggest difference between an authorized user and a joint account owner is that
the original owner of the account is the only person responsible for repaying the debt.
Not exact matches
Roth IRAs have several benefits, including the potential for tax - free withdrawals, * and no required minimum distributions during the lifetime
of the
original account owner.
For example, if the
original account owner purchased an annuity for $ 100,000 and then passed away when the value was worth $ 150,000, the gain
of $ 50,000 is taxed as ordinary income to the beneficiary.
Some
of the RMD wrinkles to which Weckbach refers pertain to inherited IRAs — retirement
accounts that pass into the hands
of a beneficiary following the death
of the
original account owner.
For example, if the
original account owner purchased an annuity for $ 100,000 and then passed away when the value was worth $ 150,000, the gain
of $ 50,000 is taxed as ordinary income to the beneficiary.
FROM, «A Trust Inherits the IRA», JULY 2017» A new inherited IRA
account will need to be opened in the name
of the
original account owner for the benefit
of the trust.
Not only does this oversight keep the child from spending the money on something other than college, it allows the
account owner to transfer the money to another beneficiary (e.g., a family member
of the
original beneficiary) for any reason.
However, if the
Account Owner purchases Class C Units
of an Investment Portfolio (other than the Principal Plus Portfolio) and later exchanges those Units for Class C Units
of the Principal Plus Interest Portfolio, and then subsequently redeems the Units
of the Principal Plus Interest Portfolio within 6 months
of the
original purchase, a CDSC will apply.
Important note: One
of the advantages
of Roth IRAs is that the
original owner is never required to withdraw money from the
accounts.
The
account owner may change the beneficiary at any time without adverse tax consequences, provided the new beneficiary is a family member
of the
original beneficiary.
Beneficiaries
of all IRAs and employer plans generally must start taking RMDs in the year after the
original account owner's death.
The
account owner can maintain control
of the
account until funds are withdrawn — and, if desired, can even change the beneficiary as long as he or she is within the immediate family
of the
original beneficiary.
Roth IRAs have several benefits, including the potential for tax - free withdrawals, * and no required minimum distributions during the lifetime
of the
original account owner.
For example, if the
original account owner purchased an annuity for $ 100,000 and then passed away when the value was worth $ 150,000, the gain
of $ 50,000 is taxed as ordinary income to the beneficiary.