What to Know Before You Inherit an IRA

Managing the taxes that come with an inherited IRA takes smart planning, especially since the SECURE Act eliminated the 'stretch IRA' game plan for most folks.

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Individual retirement accounts represent an important part of the legacy many of us intend to pass on, but inheriting an IRA presents challenges that demand adequate planning and strategies. Notably, the SECURE Act and, more recently, SECURE 2.0 Act have ushered in sweeping changes to retirement and estate planning, especially for those inheriting retirement accounts.

Under the new rules, most IRAs inherited by non-spouse beneficiaries must be cleaned out within 10 years of the original owner's death. Previously, beneficiaries could "stretch" their distributions over their lifetimes, potentially lowering their tax obligations. This end to the "stretch IRA" strategy means you need a more calculated approach to managing any inherited funds.

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Antwone Harris, MBA, CFP®
Chief Planning Strategist, Platinum Bridge Wealth Strategies

Antwone Harris, MBA, CFP®, is a seasoned financial professional with over 20 years of experience helping clients transition from their main careers to the next phase of their lives. As a former VP-Senior Financial Consultant at Charles Schwab Inc., he managed over $890 million in client assets and ranked in the top 5% of more than 1,100 advisers nationwide. His financial expertise has been featured in major media outlets such as CBS, ABC, NBC, FOX, The Washington Post, Bloomberg, The Financial Times and Kiplinger. Harris is a CERTIFIED FINANCIAL PLANNER™ and a Retirement Income Certified Professional®, focusing his practice on creating comprehensive plans for individuals approaching or already in retirement. Recognizing the anxiety surrounding retirement preparation, Harris founded Platinum Bridge Wealth Strategies to provide specialized financial planning for those nearing or in retirement.