May 23, 2025
IRA Beneficiaries: Who Inherits What and When?
IRA Beneficiaries: Who Inherits What and When? – Just back from the Ed Slott Conference, Chris Boyd shares his in-depth commentary on how the Secure Act changed rules for distributing assets from an inherited IRA. Chris is joined by co-host Jeff Perry as they explore the sometimes confusing and technical rules of the three distinct categories of IRA beneficiaries. Chris outlines the basic rules as he points out that there are exceptions to be aware of. Jeff highlights the need for financial advisors to collaborate with client’s income tax preparers and estate planning to not only avoid unnecessary taxes and penalties, but to have all the pieces work together as part of a comprehensive financial plan. For more information or to reach TEAM AMR, click the following link: https://www.wealthenhancement.com/s/advisor-teams/amr
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Welcome to Something More with Chris Boyd.
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Chris Boyd is a certified financial planner, practitioner,
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and senior vice president and financial advisor at
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Wealth Enhancement Group, one of the nation's largest
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registered investment advisors.
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We call it Something More because we'd like
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to talk not only about those important dollar
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and cents issues, but also the quality of
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life issues that make the money matters matter.
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Here he is, your fulfillment facilitator, your partner
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in prosperity, advising clients on Cape Cod and
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across the country.
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Here's your host, Jay Christopher Boyd.
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Welcome everybody.
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Thanks for being with us for another episode
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of Something More with Chris Boyd.
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I'm here with Jeff Perry.
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We're both of the AMR team at Wealth
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Enhancement and glad to have you with us.
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Last week, you may have been listening and
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Jeff and Russ were handling the show and
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I was really enjoying the mailbag while I
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was away.
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Well, in any case, as you may have
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mentioned, I was doing some continuing education.
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One of the video clips they referenced in
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the program was by Warren Buffett saying, best
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investment is investing in yourself.
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That's what we're trying to do.
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We're trying to invest in the kind of
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education and information that helps us do what
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we do with our clients even better.
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So I thought I'd try to share, you
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know, maybe there's all these various things we
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could talk about Jeff, but I thought maybe
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one of the tidbits that can get confusing
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since the Secure Act and thought we'd talk
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a little bit about what happens with different
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kinds of beneficiaries from an IRA and try
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to clarify some of those rules.
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And candidly, this can get confusing, so I'll
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try not to make it as clear as
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mud as they say.
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Well, just the other day, you and I
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were talking about a client and he has
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a beneficiary IRA and the amount that he
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is taking, his inherited amount, seemed too small
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based upon what the current rules might be.
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But then we looked and he had like
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10 years ago, he had started, he had
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received this beneficiary IRA, inherited IRA.
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So the rules were different then.
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So it depends on when you might inherit
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it too, right?
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So that's exactly right.
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So, you know, let's start with that.
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So if you have an IRA that you
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inherited before 2020, it was under the old
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rules that allowed for a stretch over a
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lifetime.
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So you had a required distribution each year,
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but it would last for many, many years.
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And the opportunity to extend it over a
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long time was great.
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So in 2020, that rule changed.
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And that was, I think, because of the
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Secure Act, the original Secure Act.
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And essentially, there's three different kinds of scenarios
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you could find for different kinds of beneficiaries.
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So we'll walk through them.
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And there's a lot of variations within them.
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And I'm going to do it in a
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different order than Ed Slott and his team
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did it when explaining this to our group.
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But, you know, so the first group that
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I want to talk about is the eligible
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designated beneficiary.
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And this is essentially someone who might be
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eligible to be treated like the old rules,
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the stretch IRA treatment.
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Now, this would not be a spouse, right?
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Or could it be?
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Well, a spouse could be, a surviving spouse
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could be one of those circumstances where you
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could treat that.
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And incidentally, even these kinds of eligible designated
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beneficiaries who have the opportunity to treat it
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like a stretch IRA, they also have the
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option if they prefer to do it as
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a 10-year rule, which is the other
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more common approach now after the Secure Act.
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So they don't have to take it over
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the prolonged period of time.
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I mean, the government is willing to let
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you pay taxes before you have to?
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You could opt to, exactly.
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So let's assume you're not a surviving spouse.
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And, you know, what are other circumstances where
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you could start the treatment as someone who
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could take it over, presumably, a lifetime with
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these stretch IRA treatment?
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Well, sort of a minor child.
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So think about this.
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Someone who dies who is old enough to
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have required distributions, 73 or older, but dies
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with a minor child, someone under the age
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of 18.
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So not a lot of those, right?
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No, but some.
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We do hear stories, maybe a former Patriots
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football coaches or something like that.
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You never know.
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Well, it could be adoption, could be adoptions.
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There are different circumstances, a minor child, and
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it's not a grandchild, just to be clear,
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but a child under the age of 21.
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So while they're under the age of 21,
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can do the stretch treatment.
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But once they exceed that age 21, they
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fall into the non sorry, the non eligible
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designated beneficiary category, which basically means they have
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the 10 year rule that applies.
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So once you get to a certain age,
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you age out of that stretch rule in
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that scenario.
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But a child, a minor child could be
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a stepchild.
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It could be an adopted child, could be
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a certain eligible foster child.
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There can be some circumstances that might go
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beyond a biological child.
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So that pool is growing as you get
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more broadly defined.
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Yeah, add some of these different things.
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There was some clarifications that included more of
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these possibilities.
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There's also someone who is disabled, an individual
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who is disabled.
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And these are usually somewhat restrictive kinds of
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terminology.
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But think in terms of maybe like a
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social security disability, not easy to be deemed
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eligible for social security disability benefits.
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It's that kind of, it's tough to get
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that.
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But if you have that kind of disability
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level, you could opt for this stretch IRA
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approach.
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I think it's probably clear, but just for
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make sure it is, we're talking about the
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beneficiary status here.
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So the beneficiary is disabled.
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Who's exactly who's eligible to treat their inherited
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IRA over a lifetime, like a stretch IRA
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situation.
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Spouse, a minor child until they age out,
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a disabled person who has, you know, a
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more serious disability, chronically ill individuals.
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And that's a little more loose in the
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definition of that.
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And then individuals, not more than 10 years
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younger than the decedent, the person whose original
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IRA it was.
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So think in terms of a sibling, within
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10 years.
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And if you're older, let's say you inherit
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your siblings or friends IRA, and you know,
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you're two years older than your sibling, well,
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you're still qualify as not more than 10
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years younger.
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Sure.
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Right.
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Okay.
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So those are various instances where you can
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use the stretch IRA still, and they refer
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to that as a eligible designated beneficiary.
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That's who gets to get into that category
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of that circumstance.
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So a little bit confusing, but.
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It seems confusing enough that if you happen
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to inherit an IRA, you probably should, before
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you do anything, talk to your financial advisor
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and just see what category, if you're in
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this category somehow, right?
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Yeah, that's a good point.
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Because it would be preferable, if you could,
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to have the option to stretch it out
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over a long period of time.
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So there are going to be a lot
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of benefits of the tax deferral and the
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compounding and so forth.
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Now, there's two other categories, because most people
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don't fit into that category, right?
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There's some, but most don't.
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Now, as we said, a spouse, it's a
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whole different thing.
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They can either turn it into their own
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IRA, and then it becomes their own issue,
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or they can continue to keep it as
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an inherited beneficiary IRA and have the option
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as to take it over a lifetime.
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And the rules for a spouse are a
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whole nother layer of complexity, because there's a
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range of possibilities.
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A friend of mine, Bill Harris, even wrote
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a book on this topic, because there's so
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many different nuances.
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And the rules have changed.
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So it's even gotten more complex since he
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wrote the book.
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So in any case, let's keep that in
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mind.
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So OK, the least likely circumstance of the
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other two possibilities is the non-designated beneficiary.
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This is going to be someone who designates
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their estate, a charity, a non-person entity,
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maybe certain types of trust.
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Some trusts have different characteristics than others, so
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it depends.
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But in effect, when there's not really a
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person-type beneficiary that's counted, there's really a
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five-year rule that applies.
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And if it was a charity, you can
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imagine they'd take it out right away.
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Sure, well, they're not subject to any tax.
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But this is one of those reasons why
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don't leave your IRA to your estate.
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Or maybe a trust.
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This really steps into the estate planning portion
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of financial planning, because it's common for people
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who have a trust, they might name a
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spouse as the beneficiary, and then they might
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name the trust as a contingent beneficiary.
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And sometimes you don't update your beneficiary.
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Some people just name the trust.
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So this, in addition to your financial advisor,
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maybe it's talking to your estate planning attorney,
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too, to see if this impacts your...
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The right kind of choice you make, right.
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And the terms of the trust are structured
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in a way to give you better treatment
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than the five-year rule.
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Now, I kind of simplified that, because it's
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actually more complicated than that.
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Of course.
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I think Alissa would know that by now.
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So the scenario I just described is when
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the person who had the IRA died after
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the required beginning date, after they were required
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to start their RMDs.
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Now, the required beginning date is actually not
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just when you turn 73, but it may
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actually be generally the April 1st after you
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turn 73.
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So if somebody died even at 73, but
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let's say their birthday was, I'll just make
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it easy, in December of the one year,
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and they just turned 73, but they're technically...
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And they died, let's say, on their birthday,
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just to make life easy.
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So they might not necessarily be considered...or the
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day after their birthday, whatever.
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They might not be considered having to met
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their required beginning date, because they actually could
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have opted to defer it until the next
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00:13:19,100 --> 00:13:24,060
April 1st, within the rules.
267
00:13:24,580 --> 00:13:26,300
So in any case, a little bit in
268
00:13:26,300 --> 00:13:26,600
the weeds.
269
00:13:27,520 --> 00:13:30,720
But again, check before you make any decisions.
270
00:13:30,840 --> 00:13:31,380
Make sure you check.
271
00:13:31,380 --> 00:13:36,060
So if someone hasn't reached their required beginning
272
00:13:36,060 --> 00:13:39,240
date, what happens then is really...
273
00:13:39,240 --> 00:13:40,660
It's a little bit confusing.
274
00:13:43,380 --> 00:13:50,900
So the required minimum distributions on the new...you
275
00:13:50,900 --> 00:13:53,460
know, the inherited IRA owner, what do they
276
00:13:53,460 --> 00:13:53,640
do?
277
00:13:53,660 --> 00:13:54,600
Beneficiary, right?
278
00:13:54,920 --> 00:13:55,060
Yeah.
279
00:13:56,060 --> 00:13:59,520
So it turns out, in that circumstance, they
280
00:13:59,520 --> 00:14:05,100
have to take out the required distributions over
281
00:14:05,100 --> 00:14:10,100
the deceased's single life expectancy table.
282
00:14:11,100 --> 00:14:13,500
Essentially, they call it a ghost life rule.
283
00:14:13,740 --> 00:14:19,840
So the distribution requirement is pretending that the
284
00:14:19,840 --> 00:14:23,960
deceased is still alive to calculate the distribution
285
00:14:23,960 --> 00:14:26,240
requirements, but on the single life table.
286
00:14:26,280 --> 00:14:27,860
Now, is that a minimum that they have
287
00:14:27,860 --> 00:14:28,260
to do?
288
00:14:29,260 --> 00:14:29,480
Yeah.
289
00:14:29,640 --> 00:14:30,840
They could do more.
290
00:14:31,600 --> 00:14:32,540
I think so, yeah.
291
00:14:32,840 --> 00:14:34,720
They could take it all, like the other
292
00:14:34,720 --> 00:14:35,120
example.
293
00:14:35,260 --> 00:14:37,800
People generally don't...the IRS doesn't generally mind if
294
00:14:37,800 --> 00:14:38,420
you take it all.
295
00:14:38,660 --> 00:14:38,880
Right.
296
00:14:41,580 --> 00:14:47,360
So this could conceivably strike a circumstance where
297
00:14:47,360 --> 00:14:51,120
you might have less than 10 years to
298
00:14:51,120 --> 00:14:52,400
take that money out.
299
00:14:52,400 --> 00:14:52,560
Sure.
300
00:14:52,960 --> 00:14:54,760
Yeah, depending on how old the beneficiary is.
301
00:14:54,780 --> 00:14:57,680
So if somebody died at, you know, 90,
302
00:14:58,080 --> 00:14:59,820
I don't know, you know, something like that,
303
00:14:59,880 --> 00:15:02,560
their single life table might be less than
304
00:15:02,560 --> 00:15:03,400
10 years.
305
00:15:03,520 --> 00:15:03,840
Sure.
306
00:15:04,620 --> 00:15:06,920
Anyway, so that's a complicating factor.
307
00:15:07,600 --> 00:15:14,880
Most people, right, in these circumstances, the...now, and
308
00:15:14,880 --> 00:15:19,160
again, this was for non-designated benefi...estates, you
309
00:15:19,160 --> 00:15:20,740
know, if it's left to your state or
310
00:15:20,740 --> 00:15:22,680
if it's left to your certain types of
311
00:15:22,680 --> 00:15:23,720
trusts that don't qualify.
312
00:15:24,200 --> 00:15:26,860
Some trusts do qualify because they see through
313
00:15:26,860 --> 00:15:30,020
to the...the right language is included and it
314
00:15:30,020 --> 00:15:32,640
sees through to the beneficiaries of the trust.
315
00:15:32,960 --> 00:15:33,060
Right.
316
00:15:33,700 --> 00:15:36,660
So the most people fall into this category,
317
00:15:36,940 --> 00:15:40,820
the non-eligible designated beneficiaries, and they have
318
00:15:40,820 --> 00:15:43,120
this 10-year rule that applies.
319
00:15:46,240 --> 00:15:53,480
So, essentially, the designated beneficiaries who do not
320
00:15:53,480 --> 00:15:57,460
fit into those other categories, grandchildren, adult children,
321
00:15:58,300 --> 00:16:00,160
some look through trusts.
322
00:16:00,360 --> 00:16:02,360
They're going to be...and so most circumstances are
323
00:16:02,360 --> 00:16:03,620
going to fall into this group.
324
00:16:04,480 --> 00:16:04,780
Okay.
325
00:16:07,360 --> 00:16:09,540
So what happens here?
326
00:16:09,540 --> 00:16:11,000
We got two circumstances.
327
00:16:12,040 --> 00:16:17,540
The original IRA owner passed either before or
328
00:16:17,540 --> 00:16:20,320
after that required beginning date.
329
00:16:21,420 --> 00:16:25,380
So let's say they died before the required
330
00:16:25,380 --> 00:16:26,280
beginning date.
331
00:16:26,500 --> 00:16:26,780
Okay.
332
00:16:28,360 --> 00:16:32,460
So in that case, the inheritor of the
333
00:16:32,460 --> 00:16:36,140
IRA has 10 years to take the money
334
00:16:36,140 --> 00:16:36,700
out...
335
00:16:36,700 --> 00:16:37,120
Yep.
336
00:16:37,120 --> 00:16:41,860
...but has no distribution requirements each year.
337
00:16:42,140 --> 00:16:44,800
It's just...they can decide whether to take it
338
00:16:44,800 --> 00:16:47,080
all at the beginning, in the middle, at
339
00:16:47,080 --> 00:16:49,120
the end, take a little bit each year.
340
00:16:49,240 --> 00:16:51,280
It's up to them how they take it.
341
00:16:51,520 --> 00:16:53,700
At the end of the 10 years, in
342
00:16:53,700 --> 00:16:57,140
the year following the year that the person
343
00:16:57,140 --> 00:17:01,400
died, they have to have emptied the account,
344
00:17:01,700 --> 00:17:04,220
okay, to avoid the penalties.
345
00:17:04,220 --> 00:17:07,359
So someone could do some tax planning in
346
00:17:07,359 --> 00:17:10,359
this if they think they're in the low
347
00:17:10,359 --> 00:17:12,839
bracket now and might be higher later or
348
00:17:12,839 --> 00:17:13,520
the opposite?
349
00:17:13,859 --> 00:17:15,560
Let's come up with a scenario.
350
00:17:15,720 --> 00:17:21,359
For example, dad dies, leaves me an IRA.
351
00:17:22,079 --> 00:17:23,780
I'm not a minor child.
352
00:17:23,980 --> 00:17:24,460
Right.
353
00:17:25,000 --> 00:17:28,280
I'm in my peak working years, and I've
354
00:17:28,280 --> 00:17:30,600
got maybe five years before I retire.
355
00:17:30,800 --> 00:17:31,260
Right.
356
00:17:32,320 --> 00:17:34,840
Well, maybe I don't really want to take
357
00:17:34,840 --> 00:17:39,060
distributions while I'm working, but once I retire,
358
00:17:39,220 --> 00:17:40,900
boy, my income is going to be lower.
359
00:17:41,540 --> 00:17:42,400
Maybe I'll take it then.
360
00:17:42,860 --> 00:17:43,620
Your tax bracket.
361
00:17:43,620 --> 00:17:44,840
I could take it all in the...
362
00:17:44,840 --> 00:17:45,460
Income and tax bracket, right.
363
00:17:45,580 --> 00:17:45,900
Yeah.
364
00:17:46,200 --> 00:17:48,640
I could take it all over those five
365
00:17:48,640 --> 00:17:50,420
years that are the last five years of
366
00:17:50,420 --> 00:17:52,380
it or whatever.
367
00:17:52,700 --> 00:17:54,040
I mean, just you come up with different
368
00:17:54,040 --> 00:17:55,300
scenarios, but you have the idea.
369
00:17:55,840 --> 00:17:56,100
Yep.
370
00:17:56,920 --> 00:17:57,360
Okay.
371
00:17:57,360 --> 00:17:59,500
Now, what if we change that story?
372
00:17:59,640 --> 00:18:01,740
Same notion, same group of people.
373
00:18:02,520 --> 00:18:04,080
Dad dies and so forth.
374
00:18:06,080 --> 00:18:10,980
Well, in this case, dad was already receiving
375
00:18:10,980 --> 00:18:11,680
his RMDs.
376
00:18:11,680 --> 00:18:13,140
He started his RMDs.
377
00:18:13,380 --> 00:18:15,020
So I don't know if I made a
378
00:18:15,020 --> 00:18:16,540
good example when I did that a minute
379
00:18:16,540 --> 00:18:16,820
ago.
380
00:18:17,020 --> 00:18:19,400
But in this case, so dad is now
381
00:18:19,400 --> 00:18:22,980
89 or 90 to 100, whatever.
382
00:18:23,400 --> 00:18:24,020
Whatever it is.
383
00:18:27,360 --> 00:18:36,900
I've got the stretch rules still apply for
384
00:18:36,900 --> 00:18:38,400
the 10 years.
385
00:18:38,540 --> 00:18:40,080
I've got to take a little bit out
386
00:18:40,080 --> 00:18:43,320
each year, but I also have to have
387
00:18:43,320 --> 00:18:44,820
it emptied by the end of the 10
388
00:18:44,820 --> 00:18:45,180
years.
389
00:18:46,120 --> 00:18:51,300
So because they started their distribution requirements, we
390
00:18:51,300 --> 00:18:52,320
can't stop them.
391
00:18:52,780 --> 00:18:55,240
The beneficiary stays on, in this case, the
392
00:18:55,240 --> 00:18:58,540
father's schedule, but it has to be emptied
393
00:18:58,540 --> 00:18:59,160
by 10 years?
394
00:18:59,160 --> 00:19:00,320
Not necessarily.
395
00:19:00,460 --> 00:19:01,200
That's a good point.
396
00:19:01,720 --> 00:19:01,860
Yep.
397
00:19:02,260 --> 00:19:05,580
So the point I'm making is because the
398
00:19:05,580 --> 00:19:11,920
father had started his distributions, the inheritor has
399
00:19:11,920 --> 00:19:16,520
to then continue to make distributions every year.
400
00:19:16,740 --> 00:19:19,180
And once it gets started, it can't be
401
00:19:19,180 --> 00:19:19,620
stopped.
402
00:19:19,700 --> 00:19:19,920
Right?
403
00:19:20,380 --> 00:19:20,560
Right.
404
00:19:20,740 --> 00:19:22,460
So we have to take something.
405
00:19:22,740 --> 00:19:25,920
Now, the way that's calculated, to your point,
406
00:19:25,920 --> 00:19:29,780
is not actually based on dad's R&D.
407
00:19:30,300 --> 00:19:30,400
Okay.
408
00:19:30,560 --> 00:19:31,720
A good comment.
409
00:19:32,260 --> 00:19:36,840
It's based on the inheritor's life expectancy on
410
00:19:36,840 --> 00:19:38,120
a single life table.
411
00:19:38,420 --> 00:19:39,140
Different chart.
412
00:19:39,400 --> 00:19:39,560
Yep.
413
00:19:39,780 --> 00:19:40,580
Different chart.
414
00:19:41,040 --> 00:19:43,120
And then every year, we just subtract one
415
00:19:43,120 --> 00:19:46,900
from that factor to come up with what
416
00:19:46,900 --> 00:19:49,080
the balance of the value of the IRA
417
00:19:49,080 --> 00:19:52,200
was on December 31st of the prior year.
418
00:19:52,200 --> 00:19:58,440
And we take that original year factor and
419
00:19:58,440 --> 00:20:00,860
subtract one, and now we divide by that
420
00:20:00,860 --> 00:20:03,760
number to come up with our distribution requirement
421
00:20:04,440 --> 00:20:07,640
this year, if that makes sense.
422
00:20:08,180 --> 00:20:14,200
Now, oftentimes, custodians don't really help you make
423
00:20:14,200 --> 00:20:16,300
sense of these, you know, what do I
424
00:20:16,300 --> 00:20:17,280
need to take this year?
425
00:20:17,280 --> 00:20:20,360
Where do I fit in these choices or
426
00:20:20,360 --> 00:20:22,320
these categories of things?
427
00:20:22,440 --> 00:20:27,280
So knowing the advisor that knows the right
428
00:20:27,280 --> 00:20:29,600
answers to these can be really important.
429
00:20:29,860 --> 00:20:31,820
Not only do we have the benefit of
430
00:20:31,820 --> 00:20:33,960
going through these kind of classes and so
431
00:20:33,960 --> 00:20:37,240
forth, we have the back office resources of
432
00:20:37,240 --> 00:20:39,080
the Ed Slot team.
433
00:20:39,720 --> 00:20:43,740
And when we've got a really, really complicated
434
00:20:43,740 --> 00:20:46,080
case, we can just go to them and
435
00:20:46,080 --> 00:20:48,720
say, hey, walk us through, what are the
436
00:20:48,720 --> 00:20:49,260
issues here?
437
00:20:49,720 --> 00:20:51,940
But as you can see, you know, there's
438
00:20:51,940 --> 00:20:54,620
a lot of nuance to trying to navigate,
439
00:20:55,040 --> 00:20:57,580
which circumstance am I in, you know?
440
00:20:58,000 --> 00:21:00,400
And there's other – one of the things
441
00:21:00,400 --> 00:21:03,500
that – we won't probably do this, Jeff,
442
00:21:03,520 --> 00:21:06,200
but there was this great case they walked
443
00:21:06,200 --> 00:21:08,860
through where an advisor said, here's a case
444
00:21:08,860 --> 00:21:13,380
we ran into and approached the team with
445
00:21:13,380 --> 00:21:14,120
their questions.
446
00:21:14,940 --> 00:21:18,300
And it was all these variables that came
447
00:21:18,300 --> 00:21:22,360
into effect and worked out to save the
448
00:21:22,360 --> 00:21:26,080
client a lot, a lot of money that
449
00:21:26,080 --> 00:21:29,820
– by helping them navigate how to make
450
00:21:29,820 --> 00:21:33,640
some of these decisions when essentially in this
451
00:21:33,640 --> 00:21:37,440
situation a spouse died, had a work plan,
452
00:21:38,020 --> 00:21:40,580
the plan hadn't been looked at, you know,
453
00:21:40,680 --> 00:21:43,060
10 years since the spouse died, but now
454
00:21:43,060 --> 00:21:46,760
the spouse's RMD age was coming into effect.
455
00:21:47,400 --> 00:21:49,600
They would have had to take distributions.
456
00:21:50,480 --> 00:21:51,780
So what should they do?
457
00:21:51,880 --> 00:21:53,640
The amount they had to take was very
458
00:21:53,640 --> 00:21:54,260
large.
459
00:21:54,960 --> 00:21:57,380
The way the calculation was based on the
460
00:21:57,380 --> 00:21:58,900
surviving spouse's age.
461
00:21:58,900 --> 00:22:01,360
It came into all these complexities.
462
00:22:01,360 --> 00:22:04,340
They figured out a number of ways.
463
00:22:04,460 --> 00:22:05,500
They did an NUA.
464
00:22:05,740 --> 00:22:07,840
We talked about that topic not long ago.
465
00:22:08,200 --> 00:22:12,520
They made some decisions that allowed them to
466
00:22:12,520 --> 00:22:15,940
have a much more palatable approach to the
467
00:22:15,940 --> 00:22:16,760
whole process.
468
00:22:16,960 --> 00:22:20,100
They found there were some after-tax contributions
469
00:22:20,100 --> 00:22:23,240
in the work plan that allowed them to
470
00:22:23,240 --> 00:22:26,240
treat some of that differently as like Roth
471
00:22:26,240 --> 00:22:27,200
conversion or something.
472
00:22:27,200 --> 00:22:29,340
So anyway, it was a really interesting case.
473
00:22:29,340 --> 00:22:32,680
But the point being, sometimes this stuff can
474
00:22:32,680 --> 00:22:34,320
get really complicated.
475
00:22:34,820 --> 00:22:39,660
And it's not just that you might withdraw
476
00:22:39,660 --> 00:22:42,900
some money too little or too late and
477
00:22:42,900 --> 00:22:46,100
have a tax, but there's penalties involved.
478
00:22:46,940 --> 00:22:49,060
Yeah, and some of these decisions you make
479
00:22:49,060 --> 00:22:53,240
could be meaningfully different in how you're taxed,
480
00:22:53,240 --> 00:22:55,280
whether you have to take it out faster
481
00:22:55,280 --> 00:22:57,300
or if you have the opportunity to take
482
00:22:57,300 --> 00:22:57,660
it slower.
483
00:22:58,220 --> 00:23:00,300
Or in some instances, maybe you're better off
484
00:23:00,300 --> 00:23:03,600
for tax strategy, the timing of when you
485
00:23:03,600 --> 00:23:06,600
take it because of your own RMDs might
486
00:23:06,600 --> 00:23:08,500
be kicking in at a certain time, and
487
00:23:08,500 --> 00:23:10,660
maybe it makes sense to take some of
488
00:23:10,660 --> 00:23:13,660
that money sooner rather than later because of
489
00:23:13,660 --> 00:23:14,260
your own.
490
00:23:14,280 --> 00:23:15,400
It does make sense.
491
00:23:15,860 --> 00:23:19,540
I'm thinking of one client that he had
492
00:23:19,540 --> 00:23:23,760
an inherited IRA, which he knows his own
493
00:23:23,760 --> 00:23:26,260
RMDs are coming at a certain date near
494
00:23:26,260 --> 00:23:29,480
in the future, so he actually accelerated the
495
00:23:29,480 --> 00:23:35,280
inherited IRA withdrawals because of a potential he
496
00:23:35,280 --> 00:23:37,080
would be getting two IRAs and his tax
497
00:23:37,080 --> 00:23:39,380
bracket would be at a much higher level.
498
00:23:39,800 --> 00:23:41,620
Yeah, you can just see how that could
499
00:23:41,620 --> 00:23:42,280
happen, right?
500
00:23:42,700 --> 00:23:46,520
So timing that and strategizing around that can
501
00:23:46,520 --> 00:23:47,200
really make sense.
502
00:23:47,200 --> 00:23:50,020
And knowing the rules as to what you
503
00:23:50,020 --> 00:23:51,560
can do and what you have to do
504
00:23:51,560 --> 00:23:54,660
and the timing around those makes a difference.
505
00:23:54,880 --> 00:23:57,380
This is also another example of where you
506
00:23:57,380 --> 00:23:59,780
should consider your advisor part of your team.
507
00:24:00,580 --> 00:24:04,880
And so you have your financial advisor talking
508
00:24:04,880 --> 00:24:07,420
with your tax preparer, talking to your estate
509
00:24:07,420 --> 00:24:11,100
planning attorney, and all making sure they're on
510
00:24:11,100 --> 00:24:13,740
a united front that this makes sense from
511
00:24:13,740 --> 00:24:15,540
a legal, from a tax, and from a
512
00:24:15,540 --> 00:24:19,040
financial planning standpoint and not just looking at
513
00:24:19,040 --> 00:24:20,800
solely the tax purposes, right?
514
00:24:20,840 --> 00:24:23,260
Because sometimes when you get these types of
515
00:24:23,260 --> 00:24:25,740
problems, you're just trying to avoid a tax
516
00:24:25,740 --> 00:24:26,140
issue.
517
00:24:27,080 --> 00:24:28,560
Yeah, exactly.
518
00:24:29,180 --> 00:24:31,300
There may be estate planning opportunities of your
519
00:24:31,300 --> 00:24:33,480
own to take advantage of, and it may
520
00:24:33,480 --> 00:24:35,320
make sense to your financial plan.
521
00:24:35,320 --> 00:24:39,280
You mentioned a Roth conversion as part of
522
00:24:39,280 --> 00:24:42,500
some pre-tax money or post-tax money.
523
00:24:42,920 --> 00:24:46,120
So there's a lot here, and it makes
524
00:24:46,120 --> 00:24:47,940
sense to work with all of your team
525
00:24:47,940 --> 00:24:49,320
to make sure you get the right answer
526
00:24:49,320 --> 00:24:51,260
because it can have impacts beyond what you
527
00:24:51,260 --> 00:24:52,000
initially think.
528
00:24:52,780 --> 00:24:54,680
So I tried to give a little bit
529
00:24:54,680 --> 00:24:57,800
of an explanation of this issue in a
530
00:24:57,800 --> 00:25:01,580
way that hopefully isn't too complicated, but granted,
531
00:25:01,900 --> 00:25:03,040
it's complicated.
532
00:25:03,040 --> 00:25:07,880
And so it's not an easy—this is the
533
00:25:07,880 --> 00:25:09,080
answer that always applies.
534
00:25:09,360 --> 00:25:12,480
So in any event, hopefully that gives you
535
00:25:12,480 --> 00:25:14,380
a little bit of insight as to how
536
00:25:14,380 --> 00:25:16,180
you might need to think about things when
537
00:25:16,180 --> 00:25:19,500
it's your circumstances, that you're either—as you're thinking
538
00:25:19,500 --> 00:25:23,540
about who you assign as a beneficiary, why
539
00:25:23,540 --> 00:25:27,220
you might choose someone versus someone else, the
540
00:25:27,220 --> 00:25:30,140
rules they might treat around that, or if
541
00:25:30,140 --> 00:25:33,480
you're thinking about when you inherit funds, how
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00:25:33,480 --> 00:25:34,480
to deal with them.
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00:25:35,020 --> 00:25:37,580
These are two sides of the same coin,
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00:25:37,720 --> 00:25:39,520
but these are important considerations.
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00:25:39,960 --> 00:25:42,380
And talk to your financial advisor, and if
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00:25:42,380 --> 00:25:44,460
you don't have someone that you're working with,
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00:25:44,800 --> 00:25:46,900
certainly reach out to our team.
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00:25:47,020 --> 00:25:49,120
We'd be happy to be a resource to
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00:25:49,120 --> 00:25:50,240
you anytime we can.
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00:25:52,340 --> 00:25:54,520
Jeff, I know there's more things we can
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00:25:54,520 --> 00:25:55,100
talk about.
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00:25:55,240 --> 00:25:57,740
We'll save it for another time, and thanks,
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00:25:57,820 --> 00:25:58,900
everybody, for being with us.
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00:25:58,900 --> 00:26:01,440
Until next time, keep striving for something more.
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00:26:03,340 --> 00:26:05,280
Thank you for listening to Something More with
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00:26:05,280 --> 00:26:05,960
Chris Boyd.
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00:26:06,280 --> 00:26:08,440
Call us for help, whether it's for financial
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00:26:08,440 --> 00:26:12,360
planning or portfolio management, insurance concerns, or those
559
00:26:12,360 --> 00:26:14,400
quality of life issues that make the money
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00:26:14,400 --> 00:26:15,500
matters matter.
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00:26:15,900 --> 00:26:19,160
Whatever's on your mind, visit us at somethingmorewithchrisboyd
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00:26:19,160 --> 00:26:22,320
.com or call us toll-free at 866
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00:26:22,320 --> 00:26:27,860
-771-8901 or send us your questions to
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00:26:27,860 --> 00:26:31,820
amr-info at wealthenhancement.com.
565
00:26:32,240 --> 00:26:33,940
You're listening to Something More with Chris Boyd
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00:26:33,940 --> 00:26:34,780
Financial Talk Show.
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00:26:34,900 --> 00:26:37,400
Wealth Enhancement Advisory Services and Jay Christopher Boyd
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00:26:37,400 --> 00:26:39,720
provide investment advice on an individual basis to
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00:26:39,720 --> 00:26:40,260
clients only.
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00:26:40,420 --> 00:26:42,400
Proper advice depends on a complete analysis of
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00:26:42,400 --> 00:26:43,600
all facts and circumstances.
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00:26:43,820 --> 00:26:45,680
The information given on this program is general
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00:26:45,680 --> 00:26:47,720
financial comments and cannot be relied upon as
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00:26:47,720 --> 00:26:49,280
pertaining to your specific situation.
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00:26:49,500 --> 00:26:51,480
Wealth Enhancement Group cannot guarantee that using the
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00:26:51,480 --> 00:26:53,480
information from this show will generate profits or
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00:26:53,480 --> 00:26:54,600
ensure freedom from loss.
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00:26:54,600 --> 00:26:56,960
Listeners should consult their own financial advisors or
579
00:26:56,960 --> 00:26:59,060
conduct their own due diligence before making any
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00:26:59,060 --> 00:26:59,840
financial decisions.
00:00:00,640 --> 00:00:03,140
Welcome to Something More with Chris Boyd.
2
00:00:03,460 --> 00:00:06,300
Chris Boyd is a certified financial planner, practitioner,
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00:00:06,560 --> 00:00:09,060
and senior vice president and financial advisor at
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00:00:09,060 --> 00:00:11,340
Wealth Enhancement Group, one of the nation's largest
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00:00:11,340 --> 00:00:12,940
registered investment advisors.
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00:00:13,440 --> 00:00:15,379
We call it Something More because we'd like
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00:00:15,379 --> 00:00:17,500
to talk not only about those important dollar
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00:00:17,500 --> 00:00:19,700
and cents issues, but also the quality of
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00:00:19,700 --> 00:00:22,120
life issues that make the money matters matter.
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00:00:22,680 --> 00:00:25,880
Here he is, your fulfillment facilitator, your partner
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00:00:25,880 --> 00:00:29,020
in prosperity, advising clients on Cape Cod and
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00:00:29,020 --> 00:00:30,100
across the country.
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Here's your host, Jay Christopher Boyd.
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00:00:33,640 --> 00:00:34,360
Welcome everybody.
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00:00:34,600 --> 00:00:36,940
Thanks for being with us for another episode
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00:00:36,940 --> 00:00:38,500
of Something More with Chris Boyd.
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00:00:38,560 --> 00:00:39,400
I'm here with Jeff Perry.
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00:00:39,620 --> 00:00:41,760
We're both of the AMR team at Wealth
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00:00:41,760 --> 00:00:44,520
Enhancement and glad to have you with us.
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00:00:47,160 --> 00:00:50,600
Last week, you may have been listening and
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00:00:50,600 --> 00:00:54,440
Jeff and Russ were handling the show and
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00:00:54,440 --> 00:00:57,520
I was really enjoying the mailbag while I
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was away.
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Well, in any case, as you may have
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mentioned, I was doing some continuing education.
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One of the video clips they referenced in
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the program was by Warren Buffett saying, best
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investment is investing in yourself.
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That's what we're trying to do.
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We're trying to invest in the kind of
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education and information that helps us do what
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we do with our clients even better.
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So I thought I'd try to share, you
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00:01:33,800 --> 00:01:36,540
know, maybe there's all these various things we
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00:01:36,540 --> 00:01:40,000
could talk about Jeff, but I thought maybe
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00:01:40,000 --> 00:01:43,800
one of the tidbits that can get confusing
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00:01:43,800 --> 00:01:48,800
since the Secure Act and thought we'd talk
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00:01:48,800 --> 00:01:51,080
a little bit about what happens with different
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00:01:51,080 --> 00:01:55,580
kinds of beneficiaries from an IRA and try
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00:01:55,580 --> 00:01:56,980
to clarify some of those rules.
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And candidly, this can get confusing, so I'll
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try not to make it as clear as
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mud as they say.
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Well, just the other day, you and I
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00:02:07,220 --> 00:02:10,540
were talking about a client and he has
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00:02:10,540 --> 00:02:14,560
a beneficiary IRA and the amount that he
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00:02:14,560 --> 00:02:20,180
is taking, his inherited amount, seemed too small
48
00:02:20,180 --> 00:02:23,480
based upon what the current rules might be.
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00:02:24,300 --> 00:02:27,700
But then we looked and he had like
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00:02:27,700 --> 00:02:30,280
10 years ago, he had started, he had
51
00:02:30,280 --> 00:02:33,120
received this beneficiary IRA, inherited IRA.
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00:02:33,480 --> 00:02:34,640
So the rules were different then.
53
00:02:34,840 --> 00:02:37,180
So it depends on when you might inherit
54
00:02:37,180 --> 00:02:37,760
it too, right?
55
00:02:38,200 --> 00:02:39,740
So that's exactly right.
56
00:02:39,740 --> 00:02:42,300
So, you know, let's start with that.
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00:02:42,420 --> 00:02:45,640
So if you have an IRA that you
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00:02:45,640 --> 00:02:51,360
inherited before 2020, it was under the old
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00:02:51,360 --> 00:02:54,720
rules that allowed for a stretch over a
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lifetime.
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00:02:55,820 --> 00:02:58,980
So you had a required distribution each year,
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00:02:59,300 --> 00:03:03,640
but it would last for many, many years.
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00:03:03,640 --> 00:03:08,060
And the opportunity to extend it over a
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long time was great.
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00:03:10,820 --> 00:03:13,900
So in 2020, that rule changed.
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And that was, I think, because of the
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Secure Act, the original Secure Act.
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00:03:22,020 --> 00:03:25,500
And essentially, there's three different kinds of scenarios
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00:03:25,500 --> 00:03:28,080
you could find for different kinds of beneficiaries.
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So we'll walk through them.
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00:03:30,300 --> 00:03:32,660
And there's a lot of variations within them.
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And I'm going to do it in a
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different order than Ed Slott and his team
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did it when explaining this to our group.
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But, you know, so the first group that
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I want to talk about is the eligible
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designated beneficiary.
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00:03:50,680 --> 00:03:53,860
And this is essentially someone who might be
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eligible to be treated like the old rules,
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the stretch IRA treatment.
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00:04:00,360 --> 00:04:03,280
Now, this would not be a spouse, right?
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00:04:03,460 --> 00:04:04,400
Or could it be?
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00:04:04,720 --> 00:04:07,680
Well, a spouse could be, a surviving spouse
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could be one of those circumstances where you
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could treat that.
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And incidentally, even these kinds of eligible designated
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beneficiaries who have the opportunity to treat it
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00:04:21,700 --> 00:04:24,300
like a stretch IRA, they also have the
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option if they prefer to do it as
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a 10-year rule, which is the other
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00:04:29,640 --> 00:04:33,100
more common approach now after the Secure Act.
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00:04:33,460 --> 00:04:36,340
So they don't have to take it over
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the prolonged period of time.
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00:04:37,820 --> 00:04:39,760
I mean, the government is willing to let
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you pay taxes before you have to?
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00:04:42,060 --> 00:04:44,520
You could opt to, exactly.
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00:04:45,400 --> 00:04:49,960
So let's assume you're not a surviving spouse.
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00:04:50,450 --> 00:04:53,360
And, you know, what are other circumstances where
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00:04:53,360 --> 00:04:58,560
you could start the treatment as someone who
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00:04:58,560 --> 00:05:02,720
could take it over, presumably, a lifetime with
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00:05:02,720 --> 00:05:05,000
these stretch IRA treatment?
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00:05:05,180 --> 00:05:08,720
Well, sort of a minor child.
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So think about this.
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00:05:12,180 --> 00:05:16,100
Someone who dies who is old enough to
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have required distributions, 73 or older, but dies
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00:05:24,920 --> 00:05:27,800
with a minor child, someone under the age
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of 18.
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00:05:29,540 --> 00:05:31,300
So not a lot of those, right?
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No, but some.
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00:05:33,000 --> 00:05:38,440
We do hear stories, maybe a former Patriots
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football coaches or something like that.
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00:05:41,660 --> 00:05:42,760
You never know.
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00:05:42,900 --> 00:05:45,240
Well, it could be adoption, could be adoptions.
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There are different circumstances, a minor child, and
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it's not a grandchild, just to be clear,
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00:05:51,340 --> 00:05:54,040
but a child under the age of 21.
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00:05:56,140 --> 00:05:58,980
So while they're under the age of 21,
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00:05:59,900 --> 00:06:01,620
can do the stretch treatment.
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00:06:01,620 --> 00:06:05,680
But once they exceed that age 21, they
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00:06:05,680 --> 00:06:10,740
fall into the non sorry, the non eligible
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00:06:10,740 --> 00:06:14,280
designated beneficiary category, which basically means they have
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00:06:14,280 --> 00:06:16,940
the 10 year rule that applies.
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00:06:17,140 --> 00:06:19,140
So once you get to a certain age,
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you age out of that stretch rule in
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that scenario.
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00:06:23,000 --> 00:06:29,200
But a child, a minor child could be
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a stepchild.
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00:06:31,160 --> 00:06:34,080
It could be an adopted child, could be
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00:06:34,080 --> 00:06:36,440
a certain eligible foster child.
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00:06:37,220 --> 00:06:40,540
There can be some circumstances that might go
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beyond a biological child.
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So that pool is growing as you get
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more broadly defined.
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00:06:46,480 --> 00:06:47,860
Yeah, add some of these different things.
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There was some clarifications that included more of
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00:06:50,900 --> 00:06:52,320
these possibilities.
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00:06:52,320 --> 00:06:55,920
There's also someone who is disabled, an individual
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who is disabled.
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00:06:57,780 --> 00:07:01,720
And these are usually somewhat restrictive kinds of
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terminology.
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But think in terms of maybe like a
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social security disability, not easy to be deemed
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00:07:08,980 --> 00:07:12,400
eligible for social security disability benefits.
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00:07:12,740 --> 00:07:16,000
It's that kind of, it's tough to get
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that.
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00:07:16,140 --> 00:07:18,500
But if you have that kind of disability
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00:07:18,500 --> 00:07:22,920
level, you could opt for this stretch IRA
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00:07:22,920 --> 00:07:23,460
approach.
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00:07:23,740 --> 00:07:25,480
I think it's probably clear, but just for
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make sure it is, we're talking about the
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beneficiary status here.
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So the beneficiary is disabled.
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00:07:32,860 --> 00:07:36,980
Who's exactly who's eligible to treat their inherited
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00:07:36,980 --> 00:07:40,480
IRA over a lifetime, like a stretch IRA
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00:07:40,480 --> 00:07:41,360
situation.
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00:07:41,360 --> 00:07:45,120
Spouse, a minor child until they age out,
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00:07:45,780 --> 00:07:49,520
a disabled person who has, you know, a
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more serious disability, chronically ill individuals.
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00:07:55,460 --> 00:07:57,980
And that's a little more loose in the
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00:07:57,980 --> 00:07:59,360
definition of that.
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00:08:00,360 --> 00:08:06,360
And then individuals, not more than 10 years
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00:08:06,360 --> 00:08:12,160
younger than the decedent, the person whose original
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00:08:12,160 --> 00:08:13,080
IRA it was.
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00:08:13,800 --> 00:08:18,240
So think in terms of a sibling, within
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00:08:18,240 --> 00:08:19,720
10 years.
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00:08:20,180 --> 00:08:25,020
And if you're older, let's say you inherit
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00:08:25,020 --> 00:08:29,000
your siblings or friends IRA, and you know,
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00:08:29,000 --> 00:08:32,080
you're two years older than your sibling, well,
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00:08:32,140 --> 00:08:34,980
you're still qualify as not more than 10
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00:08:34,980 --> 00:08:35,600
years younger.
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00:08:36,740 --> 00:08:36,880
Sure.
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00:08:37,200 --> 00:08:37,380
Right.
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00:08:37,659 --> 00:08:37,860
Okay.
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00:08:38,240 --> 00:08:43,600
So those are various instances where you can
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00:08:43,600 --> 00:08:47,520
use the stretch IRA still, and they refer
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00:08:47,520 --> 00:08:52,380
to that as a eligible designated beneficiary.
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00:08:53,010 --> 00:08:55,260
That's who gets to get into that category
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00:08:55,260 --> 00:08:58,960
of that circumstance.
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00:09:00,740 --> 00:09:02,640
So a little bit confusing, but.
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00:09:02,820 --> 00:09:04,880
It seems confusing enough that if you happen
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00:09:04,880 --> 00:09:08,780
to inherit an IRA, you probably should, before
182
00:09:08,780 --> 00:09:11,480
you do anything, talk to your financial advisor
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00:09:11,480 --> 00:09:13,760
and just see what category, if you're in
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00:09:13,760 --> 00:09:15,100
this category somehow, right?
185
00:09:15,820 --> 00:09:17,420
Yeah, that's a good point.
186
00:09:17,420 --> 00:09:20,900
Because it would be preferable, if you could,
187
00:09:21,480 --> 00:09:23,840
to have the option to stretch it out
188
00:09:23,840 --> 00:09:25,240
over a long period of time.
189
00:09:25,680 --> 00:09:26,280
So there are going to be a lot
190
00:09:26,280 --> 00:09:28,200
of benefits of the tax deferral and the
191
00:09:28,200 --> 00:09:30,100
compounding and so forth.
192
00:09:30,440 --> 00:09:33,760
Now, there's two other categories, because most people
193
00:09:33,760 --> 00:09:35,580
don't fit into that category, right?
194
00:09:35,580 --> 00:09:37,640
There's some, but most don't.
195
00:09:38,360 --> 00:09:39,900
Now, as we said, a spouse, it's a
196
00:09:39,900 --> 00:09:40,480
whole different thing.
197
00:09:40,540 --> 00:09:43,080
They can either turn it into their own
198
00:09:43,080 --> 00:09:45,140
IRA, and then it becomes their own issue,
199
00:09:45,220 --> 00:09:47,040
or they can continue to keep it as
200
00:09:47,040 --> 00:09:52,600
an inherited beneficiary IRA and have the option
201
00:09:52,600 --> 00:09:54,400
as to take it over a lifetime.
202
00:09:54,660 --> 00:09:57,820
And the rules for a spouse are a
203
00:09:57,820 --> 00:10:00,240
whole nother layer of complexity, because there's a
204
00:10:00,240 --> 00:10:02,240
range of possibilities.
205
00:10:03,100 --> 00:10:05,680
A friend of mine, Bill Harris, even wrote
206
00:10:05,680 --> 00:10:09,960
a book on this topic, because there's so
207
00:10:09,960 --> 00:10:11,480
many different nuances.
208
00:10:11,860 --> 00:10:12,920
And the rules have changed.
209
00:10:12,920 --> 00:10:16,160
So it's even gotten more complex since he
210
00:10:16,160 --> 00:10:16,600
wrote the book.
211
00:10:16,840 --> 00:10:20,360
So in any case, let's keep that in
212
00:10:20,360 --> 00:10:20,500
mind.
213
00:10:20,640 --> 00:10:25,840
So OK, the least likely circumstance of the
214
00:10:25,840 --> 00:10:31,300
other two possibilities is the non-designated beneficiary.
215
00:10:32,020 --> 00:10:35,460
This is going to be someone who designates
216
00:10:35,460 --> 00:10:40,920
their estate, a charity, a non-person entity,
217
00:10:41,800 --> 00:10:43,460
maybe certain types of trust.
218
00:10:43,760 --> 00:10:47,440
Some trusts have different characteristics than others, so
219
00:10:47,440 --> 00:10:48,000
it depends.
220
00:10:48,520 --> 00:10:54,680
But in effect, when there's not really a
221
00:10:54,680 --> 00:11:00,080
person-type beneficiary that's counted, there's really a
222
00:11:00,080 --> 00:11:02,640
five-year rule that applies.
223
00:11:03,560 --> 00:11:05,140
And if it was a charity, you can
224
00:11:05,140 --> 00:11:06,840
imagine they'd take it out right away.
225
00:11:06,900 --> 00:11:09,500
Sure, well, they're not subject to any tax.
226
00:11:11,400 --> 00:11:14,220
But this is one of those reasons why
227
00:11:14,220 --> 00:11:17,400
don't leave your IRA to your estate.
228
00:11:18,040 --> 00:11:19,300
Or maybe a trust.
229
00:11:19,440 --> 00:11:23,340
This really steps into the estate planning portion
230
00:11:23,340 --> 00:11:27,200
of financial planning, because it's common for people
231
00:11:27,200 --> 00:11:30,460
who have a trust, they might name a
232
00:11:30,460 --> 00:11:32,780
spouse as the beneficiary, and then they might
233
00:11:32,780 --> 00:11:34,900
name the trust as a contingent beneficiary.
234
00:11:35,120 --> 00:11:39,480
And sometimes you don't update your beneficiary.
235
00:11:39,480 --> 00:11:41,700
Some people just name the trust.
236
00:11:41,860 --> 00:11:45,000
So this, in addition to your financial advisor,
237
00:11:45,180 --> 00:11:49,920
maybe it's talking to your estate planning attorney,
238
00:11:49,920 --> 00:11:52,480
too, to see if this impacts your...
239
00:11:53,140 --> 00:11:55,520
The right kind of choice you make, right.
240
00:11:55,640 --> 00:11:58,200
And the terms of the trust are structured
241
00:11:58,200 --> 00:12:01,160
in a way to give you better treatment
242
00:12:01,160 --> 00:12:03,840
than the five-year rule.
243
00:12:04,260 --> 00:12:06,760
Now, I kind of simplified that, because it's
244
00:12:06,760 --> 00:12:08,440
actually more complicated than that.
245
00:12:08,440 --> 00:12:09,120
Of course.
246
00:12:09,880 --> 00:12:12,800
I think Alissa would know that by now.
247
00:12:13,500 --> 00:12:16,200
So the scenario I just described is when
248
00:12:16,200 --> 00:12:21,600
the person who had the IRA died after
249
00:12:21,600 --> 00:12:25,760
the required beginning date, after they were required
250
00:12:25,760 --> 00:12:28,020
to start their RMDs.
251
00:12:28,600 --> 00:12:33,320
Now, the required beginning date is actually not
252
00:12:33,320 --> 00:12:36,720
just when you turn 73, but it may
253
00:12:36,720 --> 00:12:41,480
actually be generally the April 1st after you
254
00:12:41,480 --> 00:12:42,300
turn 73.
255
00:12:42,460 --> 00:12:47,060
So if somebody died even at 73, but
256
00:12:47,060 --> 00:12:49,000
let's say their birthday was, I'll just make
257
00:12:49,000 --> 00:12:52,600
it easy, in December of the one year,
258
00:12:53,440 --> 00:12:59,340
and they just turned 73, but they're technically...
259
00:12:59,980 --> 00:13:01,680
And they died, let's say, on their birthday,
260
00:13:01,740 --> 00:13:02,660
just to make life easy.
261
00:13:03,450 --> 00:13:08,120
So they might not necessarily be considered...or the
262
00:13:08,120 --> 00:13:09,260
day after their birthday, whatever.
263
00:13:09,560 --> 00:13:12,560
They might not be considered having to met
264
00:13:12,560 --> 00:13:15,460
their required beginning date, because they actually could
265
00:13:15,460 --> 00:13:19,100
have opted to defer it until the next
266
00:13:19,100 --> 00:13:24,060
April 1st, within the rules.
267
00:13:24,580 --> 00:13:26,300
So in any case, a little bit in
268
00:13:26,300 --> 00:13:26,600
the weeds.
269
00:13:27,520 --> 00:13:30,720
But again, check before you make any decisions.
270
00:13:30,840 --> 00:13:31,380
Make sure you check.
271
00:13:31,380 --> 00:13:36,060
So if someone hasn't reached their required beginning
272
00:13:36,060 --> 00:13:39,240
date, what happens then is really...
273
00:13:39,240 --> 00:13:40,660
It's a little bit confusing.
274
00:13:43,380 --> 00:13:50,900
So the required minimum distributions on the new...you
275
00:13:50,900 --> 00:13:53,460
know, the inherited IRA owner, what do they
276
00:13:53,460 --> 00:13:53,640
do?
277
00:13:53,660 --> 00:13:54,600
Beneficiary, right?
278
00:13:54,920 --> 00:13:55,060
Yeah.
279
00:13:56,060 --> 00:13:59,520
So it turns out, in that circumstance, they
280
00:13:59,520 --> 00:14:05,100
have to take out the required distributions over
281
00:14:05,100 --> 00:14:10,100
the deceased's single life expectancy table.
282
00:14:11,100 --> 00:14:13,500
Essentially, they call it a ghost life rule.
283
00:14:13,740 --> 00:14:19,840
So the distribution requirement is pretending that the
284
00:14:19,840 --> 00:14:23,960
deceased is still alive to calculate the distribution
285
00:14:23,960 --> 00:14:26,240
requirements, but on the single life table.
286
00:14:26,280 --> 00:14:27,860
Now, is that a minimum that they have
287
00:14:27,860 --> 00:14:28,260
to do?
288
00:14:29,260 --> 00:14:29,480
Yeah.
289
00:14:29,640 --> 00:14:30,840
They could do more.
290
00:14:31,600 --> 00:14:32,540
I think so, yeah.
291
00:14:32,840 --> 00:14:34,720
They could take it all, like the other
292
00:14:34,720 --> 00:14:35,120
example.
293
00:14:35,260 --> 00:14:37,800
People generally don't...the IRS doesn't generally mind if
294
00:14:37,800 --> 00:14:38,420
you take it all.
295
00:14:38,660 --> 00:14:38,880
Right.
296
00:14:41,580 --> 00:14:47,360
So this could conceivably strike a circumstance where
297
00:14:47,360 --> 00:14:51,120
you might have less than 10 years to
298
00:14:51,120 --> 00:14:52,400
take that money out.
299
00:14:52,400 --> 00:14:52,560
Sure.
300
00:14:52,960 --> 00:14:54,760
Yeah, depending on how old the beneficiary is.
301
00:14:54,780 --> 00:14:57,680
So if somebody died at, you know, 90,
302
00:14:58,080 --> 00:14:59,820
I don't know, you know, something like that,
303
00:14:59,880 --> 00:15:02,560
their single life table might be less than
304
00:15:02,560 --> 00:15:03,400
10 years.
305
00:15:03,520 --> 00:15:03,840
Sure.
306
00:15:04,620 --> 00:15:06,920
Anyway, so that's a complicating factor.
307
00:15:07,600 --> 00:15:14,880
Most people, right, in these circumstances, the...now, and
308
00:15:14,880 --> 00:15:19,160
again, this was for non-designated benefi...estates, you
309
00:15:19,160 --> 00:15:20,740
know, if it's left to your state or
310
00:15:20,740 --> 00:15:22,680
if it's left to your certain types of
311
00:15:22,680 --> 00:15:23,720
trusts that don't qualify.
312
00:15:24,200 --> 00:15:26,860
Some trusts do qualify because they see through
313
00:15:26,860 --> 00:15:30,020
to the...the right language is included and it
314
00:15:30,020 --> 00:15:32,640
sees through to the beneficiaries of the trust.
315
00:15:32,960 --> 00:15:33,060
Right.
316
00:15:33,700 --> 00:15:36,660
So the most people fall into this category,
317
00:15:36,940 --> 00:15:40,820
the non-eligible designated beneficiaries, and they have
318
00:15:40,820 --> 00:15:43,120
this 10-year rule that applies.
319
00:15:46,240 --> 00:15:53,480
So, essentially, the designated beneficiaries who do not
320
00:15:53,480 --> 00:15:57,460
fit into those other categories, grandchildren, adult children,
321
00:15:58,300 --> 00:16:00,160
some look through trusts.
322
00:16:00,360 --> 00:16:02,360
They're going to be...and so most circumstances are
323
00:16:02,360 --> 00:16:03,620
going to fall into this group.
324
00:16:04,480 --> 00:16:04,780
Okay.
325
00:16:07,360 --> 00:16:09,540
So what happens here?
326
00:16:09,540 --> 00:16:11,000
We got two circumstances.
327
00:16:12,040 --> 00:16:17,540
The original IRA owner passed either before or
328
00:16:17,540 --> 00:16:20,320
after that required beginning date.
329
00:16:21,420 --> 00:16:25,380
So let's say they died before the required
330
00:16:25,380 --> 00:16:26,280
beginning date.
331
00:16:26,500 --> 00:16:26,780
Okay.
332
00:16:28,360 --> 00:16:32,460
So in that case, the inheritor of the
333
00:16:32,460 --> 00:16:36,140
IRA has 10 years to take the money
334
00:16:36,140 --> 00:16:36,700
out...
335
00:16:36,700 --> 00:16:37,120
Yep.
336
00:16:37,120 --> 00:16:41,860
...but has no distribution requirements each year.
337
00:16:42,140 --> 00:16:44,800
It's just...they can decide whether to take it
338
00:16:44,800 --> 00:16:47,080
all at the beginning, in the middle, at
339
00:16:47,080 --> 00:16:49,120
the end, take a little bit each year.
340
00:16:49,240 --> 00:16:51,280
It's up to them how they take it.
341
00:16:51,520 --> 00:16:53,700
At the end of the 10 years, in
342
00:16:53,700 --> 00:16:57,140
the year following the year that the person
343
00:16:57,140 --> 00:17:01,400
died, they have to have emptied the account,
344
00:17:01,700 --> 00:17:04,220
okay, to avoid the penalties.
345
00:17:04,220 --> 00:17:07,359
So someone could do some tax planning in
346
00:17:07,359 --> 00:17:10,359
this if they think they're in the low
347
00:17:10,359 --> 00:17:12,839
bracket now and might be higher later or
348
00:17:12,839 --> 00:17:13,520
the opposite?
349
00:17:13,859 --> 00:17:15,560
Let's come up with a scenario.
350
00:17:15,720 --> 00:17:21,359
For example, dad dies, leaves me an IRA.
351
00:17:22,079 --> 00:17:23,780
I'm not a minor child.
352
00:17:23,980 --> 00:17:24,460
Right.
353
00:17:25,000 --> 00:17:28,280
I'm in my peak working years, and I've
354
00:17:28,280 --> 00:17:30,600
got maybe five years before I retire.
355
00:17:30,800 --> 00:17:31,260
Right.
356
00:17:32,320 --> 00:17:34,840
Well, maybe I don't really want to take
357
00:17:34,840 --> 00:17:39,060
distributions while I'm working, but once I retire,
358
00:17:39,220 --> 00:17:40,900
boy, my income is going to be lower.
359
00:17:41,540 --> 00:17:42,400
Maybe I'll take it then.
360
00:17:42,860 --> 00:17:43,620
Your tax bracket.
361
00:17:43,620 --> 00:17:44,840
I could take it all in the...
362
00:17:44,840 --> 00:17:45,460
Income and tax bracket, right.
363
00:17:45,580 --> 00:17:45,900
Yeah.
364
00:17:46,200 --> 00:17:48,640
I could take it all over those five
365
00:17:48,640 --> 00:17:50,420
years that are the last five years of
366
00:17:50,420 --> 00:17:52,380
it or whatever.
367
00:17:52,700 --> 00:17:54,040
I mean, just you come up with different
368
00:17:54,040 --> 00:17:55,300
scenarios, but you have the idea.
369
00:17:55,840 --> 00:17:56,100
Yep.
370
00:17:56,920 --> 00:17:57,360
Okay.
371
00:17:57,360 --> 00:17:59,500
Now, what if we change that story?
372
00:17:59,640 --> 00:18:01,740
Same notion, same group of people.
373
00:18:02,520 --> 00:18:04,080
Dad dies and so forth.
374
00:18:06,080 --> 00:18:10,980
Well, in this case, dad was already receiving
375
00:18:10,980 --> 00:18:11,680
his RMDs.
376
00:18:11,680 --> 00:18:13,140
He started his RMDs.
377
00:18:13,380 --> 00:18:15,020
So I don't know if I made a
378
00:18:15,020 --> 00:18:16,540
good example when I did that a minute
379
00:18:16,540 --> 00:18:16,820
ago.
380
00:18:17,020 --> 00:18:19,400
But in this case, so dad is now
381
00:18:19,400 --> 00:18:22,980
89 or 90 to 100, whatever.
382
00:18:23,400 --> 00:18:24,020
Whatever it is.
383
00:18:27,360 --> 00:18:36,900
I've got the stretch rules still apply for
384
00:18:36,900 --> 00:18:38,400
the 10 years.
385
00:18:38,540 --> 00:18:40,080
I've got to take a little bit out
386
00:18:40,080 --> 00:18:43,320
each year, but I also have to have
387
00:18:43,320 --> 00:18:44,820
it emptied by the end of the 10
388
00:18:44,820 --> 00:18:45,180
years.
389
00:18:46,120 --> 00:18:51,300
So because they started their distribution requirements, we
390
00:18:51,300 --> 00:18:52,320
can't stop them.
391
00:18:52,780 --> 00:18:55,240
The beneficiary stays on, in this case, the
392
00:18:55,240 --> 00:18:58,540
father's schedule, but it has to be emptied
393
00:18:58,540 --> 00:18:59,160
by 10 years?
394
00:18:59,160 --> 00:19:00,320
Not necessarily.
395
00:19:00,460 --> 00:19:01,200
That's a good point.
396
00:19:01,720 --> 00:19:01,860
Yep.
397
00:19:02,260 --> 00:19:05,580
So the point I'm making is because the
398
00:19:05,580 --> 00:19:11,920
father had started his distributions, the inheritor has
399
00:19:11,920 --> 00:19:16,520
to then continue to make distributions every year.
400
00:19:16,740 --> 00:19:19,180
And once it gets started, it can't be
401
00:19:19,180 --> 00:19:19,620
stopped.
402
00:19:19,700 --> 00:19:19,920
Right?
403
00:19:20,380 --> 00:19:20,560
Right.
404
00:19:20,740 --> 00:19:22,460
So we have to take something.
405
00:19:22,740 --> 00:19:25,920
Now, the way that's calculated, to your point,
406
00:19:25,920 --> 00:19:29,780
is not actually based on dad's R&D.
407
00:19:30,300 --> 00:19:30,400
Okay.
408
00:19:30,560 --> 00:19:31,720
A good comment.
409
00:19:32,260 --> 00:19:36,840
It's based on the inheritor's life expectancy on
410
00:19:36,840 --> 00:19:38,120
a single life table.
411
00:19:38,420 --> 00:19:39,140
Different chart.
412
00:19:39,400 --> 00:19:39,560
Yep.
413
00:19:39,780 --> 00:19:40,580
Different chart.
414
00:19:41,040 --> 00:19:43,120
And then every year, we just subtract one
415
00:19:43,120 --> 00:19:46,900
from that factor to come up with what
416
00:19:46,900 --> 00:19:49,080
the balance of the value of the IRA
417
00:19:49,080 --> 00:19:52,200
was on December 31st of the prior year.
418
00:19:52,200 --> 00:19:58,440
And we take that original year factor and
419
00:19:58,440 --> 00:20:00,860
subtract one, and now we divide by that
420
00:20:00,860 --> 00:20:03,760
number to come up with our distribution requirement
421
00:20:04,440 --> 00:20:07,640
this year, if that makes sense.
422
00:20:08,180 --> 00:20:14,200
Now, oftentimes, custodians don't really help you make
423
00:20:14,200 --> 00:20:16,300
sense of these, you know, what do I
424
00:20:16,300 --> 00:20:17,280
need to take this year?
425
00:20:17,280 --> 00:20:20,360
Where do I fit in these choices or
426
00:20:20,360 --> 00:20:22,320
these categories of things?
427
00:20:22,440 --> 00:20:27,280
So knowing the advisor that knows the right
428
00:20:27,280 --> 00:20:29,600
answers to these can be really important.
429
00:20:29,860 --> 00:20:31,820
Not only do we have the benefit of
430
00:20:31,820 --> 00:20:33,960
going through these kind of classes and so
431
00:20:33,960 --> 00:20:37,240
forth, we have the back office resources of
432
00:20:37,240 --> 00:20:39,080
the Ed Slot team.
433
00:20:39,720 --> 00:20:43,740
And when we've got a really, really complicated
434
00:20:43,740 --> 00:20:46,080
case, we can just go to them and
435
00:20:46,080 --> 00:20:48,720
say, hey, walk us through, what are the
436
00:20:48,720 --> 00:20:49,260
issues here?
437
00:20:49,720 --> 00:20:51,940
But as you can see, you know, there's
438
00:20:51,940 --> 00:20:54,620
a lot of nuance to trying to navigate,
439
00:20:55,040 --> 00:20:57,580
which circumstance am I in, you know?
440
00:20:58,000 --> 00:21:00,400
And there's other – one of the things
441
00:21:00,400 --> 00:21:03,500
that – we won't probably do this, Jeff,
442
00:21:03,520 --> 00:21:06,200
but there was this great case they walked
443
00:21:06,200 --> 00:21:08,860
through where an advisor said, here's a case
444
00:21:08,860 --> 00:21:13,380
we ran into and approached the team with
445
00:21:13,380 --> 00:21:14,120
their questions.
446
00:21:14,940 --> 00:21:18,300
And it was all these variables that came
447
00:21:18,300 --> 00:21:22,360
into effect and worked out to save the
448
00:21:22,360 --> 00:21:26,080
client a lot, a lot of money that
449
00:21:26,080 --> 00:21:29,820
– by helping them navigate how to make
450
00:21:29,820 --> 00:21:33,640
some of these decisions when essentially in this
451
00:21:33,640 --> 00:21:37,440
situation a spouse died, had a work plan,
452
00:21:38,020 --> 00:21:40,580
the plan hadn't been looked at, you know,
453
00:21:40,680 --> 00:21:43,060
10 years since the spouse died, but now
454
00:21:43,060 --> 00:21:46,760
the spouse's RMD age was coming into effect.
455
00:21:47,400 --> 00:21:49,600
They would have had to take distributions.
456
00:21:50,480 --> 00:21:51,780
So what should they do?
457
00:21:51,880 --> 00:21:53,640
The amount they had to take was very
458
00:21:53,640 --> 00:21:54,260
large.
459
00:21:54,960 --> 00:21:57,380
The way the calculation was based on the
460
00:21:57,380 --> 00:21:58,900
surviving spouse's age.
461
00:21:58,900 --> 00:22:01,360
It came into all these complexities.
462
00:22:01,360 --> 00:22:04,340
They figured out a number of ways.
463
00:22:04,460 --> 00:22:05,500
They did an NUA.
464
00:22:05,740 --> 00:22:07,840
We talked about that topic not long ago.
465
00:22:08,200 --> 00:22:12,520
They made some decisions that allowed them to
466
00:22:12,520 --> 00:22:15,940
have a much more palatable approach to the
467
00:22:15,940 --> 00:22:16,760
whole process.
468
00:22:16,960 --> 00:22:20,100
They found there were some after-tax contributions
469
00:22:20,100 --> 00:22:23,240
in the work plan that allowed them to
470
00:22:23,240 --> 00:22:26,240
treat some of that differently as like Roth
471
00:22:26,240 --> 00:22:27,200
conversion or something.
472
00:22:27,200 --> 00:22:29,340
So anyway, it was a really interesting case.
473
00:22:29,340 --> 00:22:32,680
But the point being, sometimes this stuff can
474
00:22:32,680 --> 00:22:34,320
get really complicated.
475
00:22:34,820 --> 00:22:39,660
And it's not just that you might withdraw
476
00:22:39,660 --> 00:22:42,900
some money too little or too late and
477
00:22:42,900 --> 00:22:46,100
have a tax, but there's penalties involved.
478
00:22:46,940 --> 00:22:49,060
Yeah, and some of these decisions you make
479
00:22:49,060 --> 00:22:53,240
could be meaningfully different in how you're taxed,
480
00:22:53,240 --> 00:22:55,280
whether you have to take it out faster
481
00:22:55,280 --> 00:22:57,300
or if you have the opportunity to take
482
00:22:57,300 --> 00:22:57,660
it slower.
483
00:22:58,220 --> 00:23:00,300
Or in some instances, maybe you're better off
484
00:23:00,300 --> 00:23:03,600
for tax strategy, the timing of when you
485
00:23:03,600 --> 00:23:06,600
take it because of your own RMDs might
486
00:23:06,600 --> 00:23:08,500
be kicking in at a certain time, and
487
00:23:08,500 --> 00:23:10,660
maybe it makes sense to take some of
488
00:23:10,660 --> 00:23:13,660
that money sooner rather than later because of
489
00:23:13,660 --> 00:23:14,260
your own.
490
00:23:14,280 --> 00:23:15,400
It does make sense.
491
00:23:15,860 --> 00:23:19,540
I'm thinking of one client that he had
492
00:23:19,540 --> 00:23:23,760
an inherited IRA, which he knows his own
493
00:23:23,760 --> 00:23:26,260
RMDs are coming at a certain date near
494
00:23:26,260 --> 00:23:29,480
in the future, so he actually accelerated the
495
00:23:29,480 --> 00:23:35,280
inherited IRA withdrawals because of a potential he
496
00:23:35,280 --> 00:23:37,080
would be getting two IRAs and his tax
497
00:23:37,080 --> 00:23:39,380
bracket would be at a much higher level.
498
00:23:39,800 --> 00:23:41,620
Yeah, you can just see how that could
499
00:23:41,620 --> 00:23:42,280
happen, right?
500
00:23:42,700 --> 00:23:46,520
So timing that and strategizing around that can
501
00:23:46,520 --> 00:23:47,200
really make sense.
502
00:23:47,200 --> 00:23:50,020
And knowing the rules as to what you
503
00:23:50,020 --> 00:23:51,560
can do and what you have to do
504
00:23:51,560 --> 00:23:54,660
and the timing around those makes a difference.
505
00:23:54,880 --> 00:23:57,380
This is also another example of where you
506
00:23:57,380 --> 00:23:59,780
should consider your advisor part of your team.
507
00:24:00,580 --> 00:24:04,880
And so you have your financial advisor talking
508
00:24:04,880 --> 00:24:07,420
with your tax preparer, talking to your estate
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planning attorney, and all making sure they're on
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00:24:11,100 --> 00:24:13,740
a united front that this makes sense from
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00:24:13,740 --> 00:24:15,540
a legal, from a tax, and from a
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00:24:15,540 --> 00:24:19,040
financial planning standpoint and not just looking at
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00:24:19,040 --> 00:24:20,800
solely the tax purposes, right?
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00:24:20,840 --> 00:24:23,260
Because sometimes when you get these types of
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00:24:23,260 --> 00:24:25,740
problems, you're just trying to avoid a tax
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00:24:25,740 --> 00:24:26,140
issue.
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00:24:27,080 --> 00:24:28,560
Yeah, exactly.
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00:24:29,180 --> 00:24:31,300
There may be estate planning opportunities of your
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00:24:31,300 --> 00:24:33,480
own to take advantage of, and it may
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00:24:33,480 --> 00:24:35,320
make sense to your financial plan.
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00:24:35,320 --> 00:24:39,280
You mentioned a Roth conversion as part of
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00:24:39,280 --> 00:24:42,500
some pre-tax money or post-tax money.
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00:24:42,920 --> 00:24:46,120
So there's a lot here, and it makes
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00:24:46,120 --> 00:24:47,940
sense to work with all of your team
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00:24:47,940 --> 00:24:49,320
to make sure you get the right answer
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00:24:49,320 --> 00:24:51,260
because it can have impacts beyond what you
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00:24:51,260 --> 00:24:52,000
initially think.
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00:24:52,780 --> 00:24:54,680
So I tried to give a little bit
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00:24:54,680 --> 00:24:57,800
of an explanation of this issue in a
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00:24:57,800 --> 00:25:01,580
way that hopefully isn't too complicated, but granted,
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00:25:01,900 --> 00:25:03,040
it's complicated.
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00:25:03,040 --> 00:25:07,880
And so it's not an easy—this is the
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00:25:07,880 --> 00:25:09,080
answer that always applies.
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00:25:09,360 --> 00:25:12,480
So in any event, hopefully that gives you
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00:25:12,480 --> 00:25:14,380
a little bit of insight as to how
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00:25:14,380 --> 00:25:16,180
you might need to think about things when
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00:25:16,180 --> 00:25:19,500
it's your circumstances, that you're either—as you're thinking
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00:25:19,500 --> 00:25:23,540
about who you assign as a beneficiary, why
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00:25:23,540 --> 00:25:27,220
you might choose someone versus someone else, the
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00:25:27,220 --> 00:25:30,140
rules they might treat around that, or if
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00:25:30,140 --> 00:25:33,480
you're thinking about when you inherit funds, how
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00:25:33,480 --> 00:25:34,480
to deal with them.
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00:25:35,020 --> 00:25:37,580
These are two sides of the same coin,
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00:25:37,720 --> 00:25:39,520
but these are important considerations.
545
00:25:39,960 --> 00:25:42,380
And talk to your financial advisor, and if
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00:25:42,380 --> 00:25:44,460
you don't have someone that you're working with,
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00:25:44,800 --> 00:25:46,900
certainly reach out to our team.
548
00:25:47,020 --> 00:25:49,120
We'd be happy to be a resource to
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00:25:49,120 --> 00:25:50,240
you anytime we can.
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00:25:52,340 --> 00:25:54,520
Jeff, I know there's more things we can
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00:25:54,520 --> 00:25:55,100
talk about.
552
00:25:55,240 --> 00:25:57,740
We'll save it for another time, and thanks,
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00:25:57,820 --> 00:25:58,900
everybody, for being with us.
554
00:25:58,900 --> 00:26:01,440
Until next time, keep striving for something more.
555
00:26:03,340 --> 00:26:05,280
Thank you for listening to Something More with
556
00:26:05,280 --> 00:26:05,960
Chris Boyd.
557
00:26:06,280 --> 00:26:08,440
Call us for help, whether it's for financial
558
00:26:08,440 --> 00:26:12,360
planning or portfolio management, insurance concerns, or those
559
00:26:12,360 --> 00:26:14,400
quality of life issues that make the money
560
00:26:14,400 --> 00:26:15,500
matters matter.
561
00:26:15,900 --> 00:26:19,160
Whatever's on your mind, visit us at somethingmorewithchrisboyd
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00:26:19,160 --> 00:26:22,320
.com or call us toll-free at 866
563
00:26:22,320 --> 00:26:27,860
-771-8901 or send us your questions to
564
00:26:27,860 --> 00:26:31,820
amr-info at wealthenhancement.com.
565
00:26:32,240 --> 00:26:33,940
You're listening to Something More with Chris Boyd
566
00:26:33,940 --> 00:26:34,780
Financial Talk Show.
567
00:26:34,900 --> 00:26:37,400
Wealth Enhancement Advisory Services and Jay Christopher Boyd
568
00:26:37,400 --> 00:26:39,720
provide investment advice on an individual basis to
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00:26:39,720 --> 00:26:40,260
clients only.
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00:26:40,420 --> 00:26:42,400
Proper advice depends on a complete analysis of
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00:26:42,400 --> 00:26:43,600
all facts and circumstances.
572
00:26:43,820 --> 00:26:45,680
The information given on this program is general
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00:26:45,680 --> 00:26:47,720
financial comments and cannot be relied upon as
574
00:26:47,720 --> 00:26:49,280
pertaining to your specific situation.
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00:26:49,500 --> 00:26:51,480
Wealth Enhancement Group cannot guarantee that using the
576
00:26:51,480 --> 00:26:53,480
information from this show will generate profits or
577
00:26:53,480 --> 00:26:54,600
ensure freedom from loss.
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00:26:54,600 --> 00:26:56,960
Listeners should consult their own financial advisors or
579
00:26:56,960 --> 00:26:59,060
conduct their own due diligence before making any
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00:26:59,060 --> 00:26:59,840
financial decisions.
