Inherited a Roth retirement plan? Advice on withdrawals is all over the map

The wealth management industry is offering conflicting and incomplete advice on how a recent change to inherited retirement plans works. [...]withdrawals from larger accounts can be big enough to push a retirement saver into a higher tax bracket, increasing her federal income tax bill. Merrill Lynch...

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Bibliographic Details
Published inFinancial Planning (Online)
Main Author Browning, Lynnley
Format Trade Publication Article
LanguageEnglish
Published New York SourceMedia dba Arizent 18.10.2022
Subjects
Advisors
Beneficiaries
Financial planners
Individual retirement accounts
Investment advisors
IRA
Retirement plans
Wealth management
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Summary:The wealth management industry is offering conflicting and incomplete advice on how a recent change to inherited retirement plans works. [...]withdrawals from larger accounts can be big enough to push a retirement saver into a higher tax bracket, increasing her federal income tax bill. Merrill Lynch says the same of heirs to Roths: For such plans, "original account owners are not subject to RMD rules unlike traditional IRAs. [...]U.S. Bank says on its website that for non-spousal heirs to Roth IRAs, "a distribution is not required each year."