TRANSCRIPT: 

Consider this. You spent a lifetime building your IRA envisioning it as a lasting legacy for your children. But recent changes in tax laws could significantly alter that vision.

Hi, I’m Hunter Brockway, founder of Boca Retirement Strategies. I’m here to guide you toward a successful stress-free retirement, helping you spend more while avoiding unnecessary taxes.

Previously, beneficiaries could stretch inherited IAS over their lifetimes, minimizing annual tax burdens. However, the Secure Act has now replaced this with a strict 10-year rule. Now, most non-spouse beneficiaries must fully deplete inherited IAS within 10 years of the original owner’s death. This accelerates tax liabilities and can push heirs into higher tax brackets.

If the original IRA owner had begun taking required minimum distributions, RMDs, the beneficiary must continue annually withdrawing during this 10-year period. Failure to comply could result in substantial penalties.

To help your heirs manage this tax burden, you can consider Rzoth conversions. Converting traditional IAS to Roth IAS during your lifetime means you pay taxes now, allowing your heirs to withdraw funds taxfree later after continued growth as well.

This video got you thinking about your own retirement planning. I’d like to offer you something to help you see the bigger picture. We’ve created a tax smart comprehensive retirement workbook for pre-retirees and retirees.

If there’s one thing I’ve noticed in my years of working with individuals, it’s that there’s always at least one aspect in the planning process where they say, “hm, I haven’t thought about that before.” No matter how smart they are, how much they’ve saved, something comes up, whether it be they realize they can spend more than they thought they could, they realize their tax bill is going to be high in retirement, they are going to leave money on the table with their current social security claiming strategy.

This workbook is designed to help you walk through the most critical areas of retirement planning with action steps, false beliefs, and areas for you to input your own reflection items.

You can download the workbook by going to the link below in the description. If you have any issues with that link, send us an email at contactbarretirement.com.

If you get through this workbook and you’d like your responses reviewed or have any questions, I’m happy to have that conversation with you, too. As always, this is no cost, no obligation, and no pressure. Best of luck.

You can consider charitable remainder trusts. By naming a CRT as your IRA beneficiary, you can provide your heirs with income over a longer period while the remainder goes to a charity of your choice.

You can consider a life insurance option. Using IRA distributions to fund a life insurance policy can offer your heirs tax-free inheritance, bypassing the 10-year rule entirely.

The new 10-year rule has transformed inheritance planning. By proactively implementing strategies like Roth conversions, CRTs, or life insurance, you can preserve your legacy and minimize tax burdens for your heirs.

If you have any financial questions or needs personalized advice, you can send an email to contact at bocarretirement.com.

Bye.