Ed Slott Monthly Newsletter - May

Avoiding non-spouse beneficiary mistakes

As the beneficiary of an inherited IRA, you might be aware of some rules that come with these retirement accounts. However, are you also aware that the rules vary depending on whether you are a spouse, a non-spouse or a trust beneficiary?

From required distributions to even the titling of the account, understanding the differences based on the type of beneficiary is crucial to avoid paying unnecessary taxes and penalties on your inheritance. Mistakes are often irreversible, so making informed choices is essential when handling inherited IRAs.

Before you so much as retitle or move your inherited IRA, click here to read these quick tips to “Avoid Non-Spouse Beneficiary Mistakes in 5 Easy Steps.”

Contributing to an HSA

The increasing costs of healthcare is one of the top concerns among Americans today. One option to consider
to help pay for these costs is to take advantage of tax-advantaged savings specifically for health expenses
through a Health Savings Account (HSA). HSAs offer three different tax advantages:

1) Contributions are deductible
2) Earnings are tax-deferred while in the HSA, and
3) Distributions are tax-free when they are used for qualified medical expenses

If you’re enrolled in a high-deductible health insurance plan, you may want to consider contributing to an HSA.
Keep in mind that, like other retirement savings vehicles, HSAs come with their own set of rules you must
follow to enjoy all of their tax benefits.

For more information, click here to download “Contributing to a Health Savings Account in 5 Easy Steps.”

Using IRAs to Help Children

Looking for a way to secure a financially stable future for your child? An IRA may be the solution! There is no minimum age for having an IRA and, as long as your child has earned income, you can open an account in their name.

Your child can contribute to their IRA with their own money from working or a gift from you, and with the power of compound interest, they can get a significant head start on a secure financial future.

To learn more, click here to download “Using IRAs to Help Children in Five Easy Steps.”

This information has been provided by a Licensed Financial and Insurance Professional and does not necessarily represent the views of the presenting professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, there is no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice and is not sponsored or endorsed by the Social Security Administration or any government agency. 

Investment advisory services offered through ChangePath LLC, a Registered Investment Adviser.  Insurance services are offered through Retirement & Wealth Solutions of Nebraska.  Retirement & Wealth Solutions of Nebraska and ChangePath, LLC are unaffiliated.