KBBS shareholder Gianna Giusti spoke with Ben Mattlin of Financial Advisor Magazine for an article about the final IRS rule on inherited IRAs.
“The industry generally saw this coming,” said Gianna Giusti at KBBS Financial in Seattle. Two years ago, the IRS released proposed regulations that indicated what would happen, she said. But in certain cases, she added, it had made sense for clients to delay distributions just in case things went differently. “For instance, if a client was on the verge of retiring, we might have encouraged them to … begin distributions upon retirement. Now we don’t have that option.”
The required annual distribution is a minimum amount that’s calculated by dividing the IRA’s balance at the end of the previous year by the owner’s remaining life expectancy (using the IRS’s actuarial data). Giusti pointed out that clients could actually take larger distributions, which might be advantageous in low-tax years. “For every beneficiary, the best path is going to depend on their tax profile,” she said.
Read the full article at Financial Advisor Magazine.
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