Inheritance Archives | Darrow Wealth Management

Inheritance Sudden Wealth

What’s The Best Thing To Do With Inherited Money?

There are lots of ways to spend an inheritance. But just because you have options, doesn't mean they're all good options. After receiving an inheritance from a loved one, heirs will often wonder: what's the best thing to do with the money? As you consider what approach is right for your…

Kristin McKennaAugust 30, 2022

Forbes Inheritance Secure Act Sudden Wealth Tax & Estate Planning Tax planning Updated for 2022

IRS Wants to Change the Inherited IRA Distribution Rules

The passing of the 2019 Secure Act changed the rules about when non-spouse beneficiaries must begin taking money from inherited retirement accounts. Starting in 2020, instead of stretching withdrawals over your lifetime, most investors inheriting an IRA from a parent were subject to a new "10 year rule." This meant…

Kristin McKennaAugust 8, 2022

401(k) Plans Forbes Inheritance Updated for 2021

If You Inherited A 401(k) From A Parent, Here’s When You Need To Take The Money—And When You Should

As part of the Secure Act, most adults who inherit a 401(k) from a parent must take the money in 10 years. Depending on your financial position and life stage, this could complicate your tax situation. After inheriting a 401(k) from a parent, consider ways to balance the benefits of…

Kristin McKennaDecember 15, 2020

401(k) Plans Inheritance Tax & Estate Planning Tax planning Updated for 2022

Inherited a 401(k) From a Parent? Tax Planning for Distributions

If you've inherited a 401(k) from a parent, you likely have questions about your options for the account and the tax impact. Luckily, non-spouse beneficiaries usually have some control over how to manage an inherited 401(k) plan. However, as part of the Secure Act, most adults who inherit a 401(k)…

Kristin McKennaNovember 23, 2020

Estate Planning Inheritance Sudden Wealth Tax & Estate Planning Trusts Updated for 2022 Wealth and Family

Inheriting a Trust Fund: Distributions to Beneficiaries

If you're inheriting a trust fund, you likely have questions about how the distribution payouts to beneficiaries work and the tax implications. While general information about how trust funds work is useful, there are limitations. Trusts can be complex, highly customizable tools, so what applies to one situation may not…

Kristin McKennaAugust 31, 2020

Brokerage Account Inheritance Tax & Estate Planning Tax planning Updated for 2022

What is a Step-up in Basis? Calculating Cost Basis of Inherited Stock or Other Assets

A step-up in basis is a tax advantage for individuals who inherit stocks or other assets, like a home. A step-up in basis could apply to stocks owned individually, jointly, or in certain types of trusts, like a revocable trust. Sometimes called a loophole, the step-up cost basis rules are…

Kristin McKennaFebruary 24, 2020

Forbes Inheritance Tax & Estate Planning

Want to Leave Your Kids an Inheritance? They May Only Have 10 Years to Take it.

The Secure Act, which was signed into law in December 2019, brings about several major changes to the retirement system. One such shift marks the end of so-called “stretch IRAs” for non-spouse beneficiaries who inherit a retirement account after 2019. Although there are a couple of exceptions, starting in 2020, most…

Kristin McKennaJanuary 14, 2020

Current events Inheritance Secure Act

The Secure Act Means Major Changes to the Retirement System

The Secure Act was signed into law on December 20th, 2019, solidifying the most significant changes to the retirement system in over a decade. Though clarification on some of the finer points of the legislation will be needed from the IRS, there is plenty we already know about the Secure…

Kristin McKennaDecember 21, 2019

Asset Management Infographics Inheritance Secure Act SEP IRA Traditional IRA Updated for 2021

Options After Inheriting an IRA from Your Spouse

If your spouse has named you as a beneficiary on their traditional IRA, SEP IRA, or SIMPLE IRA, you will need to understand your options for the account you have just inherited. In general, you will have three choices for the IRA you have inherited. As you review your options,…

Kristin McKennaApril 13, 2018

Inheritance Updated for 2022

What to do After Inheriting a Retirement Account from a Parent or Relative

What to do after inheriting a retirement account from a parent or relative Updated in 2022. If you have just inherited a retirement account like an IRA or 401(k) from a parent, sibling, or relative, you may be unsure about what your options are and what to do next. As…

Kristin McKennaMarch 18, 2018

Inheritance