Who Knew Mom Had a Financial Planner?

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Not me.  At least not while she was alive.  As I was going through mom's papers over the last few weeks, I found papers with her financial planner's contact information. I  gave her a call about two weeks ago and we had our first meeting last evening.  Suzanne was shocked that mom had passed.  When she met with her in February of this year, mom was doing pretty darn good.

There are more new terms that I have learned this week.  Required Minimum Distribution:    (RMDs) generally are minimum amounts that a retirement plan account owner must withdraw annually starting with the year that he or she reaches 70 ½ years of age or, if later, the year in which he or she retires. However, if the retirement plan account is an IRA or the account owner is a 5% owner of the business sponsoring the retirement plan, the RMDs must begin once the account holder is age 70 ½, regardless of whether he or she is retired. 

As her surviving beneficiary, I too am required to take Required Minimum distributions from her IRA.  The calculations are based on an IRS tax table based on my age.  Since she did not take distribution this year, I will be required to start taking distributions this year. I am considered a non-spousal inheritor:

 When you transfer assets from a traditional IRA into an IRA beneficiary distribution account (inherited IRA), the rules for MRDs still apply. This means you must withdraw a certain amount of money from your inherited IRA each year, based on your age and life expectancy. In the case of a non-spouse inheritor though, MRDs will need to begin before the inheritor reaches age 70½. These distributions may be taxed as ordinary income. However, if the original IRA was a Roth IRA and the assets were in the account for five years or more, distributions may be tax free. Consult a tax adviser if you feel you’ve inherited a Roth IRA that wasn’t opened for five years before the original owner passed away.

 The transfer is in place.  What happens next?  There are  her accounts that I do not have access to.  Those are going through probate.  When that is all done, I will more decisions to make with the remaining money that is in those accounts.  Pay off the house??.....Buy new used car??.....  Definitely getting new windows!!  

In the next couple of weeks I need to make an appointment with my CPA.  Big changes in our financial situation will need good advice so we don't pay Uncle Sam too much.  Still overwhelmed with all of this, but moving forward a little bit each day.

My latest Thrift Store Adventure!