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Here at Asset Preservation Capital, LTD, we are adhering to state and local guidelines in order to protect both the health and safety of clients and staff. Keeping our clients and staff safe is our highest priority and we’re taking all appropriate measures to ensure a safe environment. Should you prefer to not meet face-to-face, we are continuing to serve our clients through virtual settings such as Zoom or phone call.

We look forward to continuing to help individuals and families achieve their ideal retirements.

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INHERITED IRAS AND EMPLOYER RETIREMENT PLANS: TODAY’S SLOTT REPORT MAILBAG

Apr 14, 2022

By Sarah Brenner, JD
Director of Retirement Education

Question:

Hello,

Client (72) has recently inherited a “Beneficiary IRA” account. My question is for next year:  Can she use qualified charitable distributions for her beneficiary IRA?

Thank you,

Kathy

Answer:

Hi Kathy,

Yes, this would work. Beneficiaries can take qualified charitable distributions (QCDs) from inherited IRAs as long as they are over age 70 ½.

Question:

Dear Ed Slott Experts,

I changed my job in January 2022 and my new employer does not allow me to contribute to a 401(k) plan for a year. Other than an IRA, is there any other way to contribute to a 401(k) or some other kind of retirement pre-tax plan so it will help with my tax situation?

Thanks,

Umang

Answer:

Hi Umang,

Unfortunately, this is predicament that many workers find themselves in. If your employer does not offer a retirement plan, your options are limited. You must be an employer to be eligible to establish a qualified plan. If you have a side job, you may qualify as self-employed, in which case you could establish a plan for your business. If you do not, an IRA would be your only option. If neither you nor your spouse participates in a plan at work, your IRA contribution would be deductible and that could help with your tax situation.

https://www.irahelp.com/slottreport/inherited-iras-and-employer-retirement-plans-todays-slott-report-mailbag