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If you’ve invested in an IRA for many decades, it may well turn
into a key source of income for your retirement. Still, you might not deplete
your IRA in your lifetime, especially if you also have a pension or a 401(k)
and other investment income. So, if your IRA still has sizable assets after
your passing, it would likely end up in your estate plan. If you leave your IRA
to grown children or other family members, could they be hit with a big tax
bill?
Here’s a little background: Up until the Secure Act of 2019, those
who inherited traditional IRAs could extend their required withdrawals over
their lifetimes, which stretched out the annual taxes due on these withdrawals.
But the Secure Act changed the provisions for non-spouse beneficiaries who
inherited an IRA after 2019, meaning that beneficiaries of inherited IRAs had
only 10 years (beginning the year after death) to withdraw the entire balance.
For some beneficiaries, this could potentially create a tax burden. (Inheritors
of Roth IRAs are also required to follow the 10-year distribution rule but are
not subject to income taxes on account earnings if the Roth IRA’s five-year
holding period has been met).
However, not all beneficiaries were affected by the new rules.
Spouses can stretch their inherited IRA distributions over their lifetimes and exceptions
exist for certain non-spouse beneficiaries. Minor children of the IRA owner
(until the age of majority), chronically ill or disabled individuals, and
beneficiaries who are no more than 10 years younger than the IRA owner may opt to
stretch their distributions.
The new 10-year requirement applies to IRAs inherited on or after
Jan. 1, 2020. But
due to confusion over changes to required minimum distribution (RMD) rules for some
beneficiaries of inherited IRAs, the IRS waived penalties for individuals who
failed to take RMDs in 2021 and 2022 and extended the RMD penalty waiver for
2023.
Although these rulings give beneficiaries — those not eligible for
the exemptions listed above — more time to plan, they will eventually need to
start taking RMDs, which could affect their tax situations. To help protect
your heirs, consider these suggestions:
• Using permanent life insurance. A properly structured
permanent life insurance policy could help you replace the assets your family
might lose to the taxes resulting from an inherited IRA. You might even
consider naming a charity as the beneficiary of an IRA, rather than your family
members. The charity would receive the IRA proceeds tax free, and the life
insurance could then provide tax-free benefits to your heirs.
• Leaving taxable investment accounts to your heirs. Apart
from your tax-deferred IRA, you may own other, fully taxable accounts
containing investments such as stocks or bonds. Typically, these investments receive
what’s known as a “step-up” in their cost basis once they are inherited. This
means your heirs will essentially inherit all the gains your investments earned
by the time of your passing — but they won’t be taxed on these gains if they
sell the assets immediately. This type of sale could help offset the taxes your
heirs will incur from the inherited IRA.
The tax and investment issues surrounding inherited IRAs can be
complex, so consult with your tax and financial advisors before making any
moves. And, as with many areas relating to inheritances, the sooner you start
planning, the better.
Chad Choate III, AAMS
828 3rd Avenue West
Bradenton, FL 34205
941-462-2445
chad.choate@edwardjones.com
This article was written by Edward Jones for use by your local Edward
Jones Financial Advisor.
Edward Jones, Member SIPC
We must never underestimate the power of touch, whether it's a gentle holding of the hand, massaging of feet, a warm hug, or gentle rubbing of the arm or back. Over the past year and a half, many have felt the absence of this important connection as they were separated from family and loved ones. Touch deprivation in old age is especially a reality for persons living with dementia, medically frail older adults, and seniors who live alone. We have all heard how touch deprivation can lead to or increase feelings of isolation, anxiety, and insecurity. In addition, throughout the COVID-19 pandemic, many older adults were observed to have declined in physical and mental health as they went for extended periods without in-person contact with those they love.Research has shown that human contact and physical touch have been linked to improved outcomes for premature infants and can be just as beneficial to older adults living with dementia. Healing touch can decrease stress, anxiety, and pain in adults and children and support improved mobility in older adults. Despite an older adults need for touch and being so receptive to touch, they are often the least likely to receive healing or therapeutic touch from healthcare providers or family members.Of course, there are trained, licensed practitioners of therapeutic touch working with patients who report feeling warmth, relaxation, and pain relief due to this type of intervention. Healing and therapeutic touch is widely used by nurses to reduce agitation in individuals with dementia in memory care facilities. Many studies have reported beneficial effects of this non-pharmacologic intervention for the treatment of behaviors seen in patients with Alzheimers. Therapeutic touch may improve quality of life by helping to decrease stress and anxiety to foster emotional, physical, and spiritual well-being. Some older adults with dementia display behavioral symptoms, such as vocal outbursts, restlessness, agitation, repetitive questions, wandering, pacing, and physical aggression toward self or others. Touch can be a therapeutic modality to treat these behavioral symptoms as well as create present-moment connection, physical contact, and comfort.What is the Healing Power of Touch?Touch therapy works by combatting the underlying causes of touch deprivation. Studies show that touch deprivation in the elderly and dementia patients may lead to a wide range of negative emotions such as:Feelings of isolationAnxietyInsecurityDecreased sensory awarenessIn implementing the strategies of touch therapy, caregivers are introducing elements of compassion that are recognized by dementia patients and are known to create emotional benefits.Aside from the potential positive effects on physical and behavioral symptoms, the fact is, there is just no replacement for human contact. Touch is one of our most basic, essential human needs that remains throughout our lifetime. As we experience physical or mental decline due to aging or illness, the need for human touch may be heightened as we seek comfort and connection with others.So, offering a gentle hug, a touch on the shoulder, back, or arm, or reaching out to hold a hand, is not only a soothing, comforting way to connect with an aging parent or older adult, but it also lets them know they are seen and valued. And ultimately, isnt that what we all want?
In the popular imagination, receiving an inheritance always sounds like a good thing after all, who doesnt want a financial windfall? And inheritances can certainly be life-altering events. But they can cause challenges, so youll want to help your heirs be prepared. To assist in this preparation, try to address some key questions affecting your heirs: Do they know whats in your estate plans? Your family and other heirs will be much better prepared to deal with an inheritance if they know what to expect. Thats why its so important that you share your estate plans with everyone involved. You need to let them know the wishes and decisions youve expressed in your will and other legal arrangements, such as a living trust. Of course, sharing this information doesnt necessarily mean that all your heirs will be completely satisfied with your choices but at least they wont be surprised, and perhaps will be less likely to cause disputes when the time comes to settle your estate. Will they know what to do with the money or other assets? You may be planning to leave your grown children a sizable amount of assets, possibly including cash, stocks, real estate, IRAs, 401Ks or other types of valuable personal property. But this inheritance brings with it several possible questions: Do your heirs already have an investment platform ready to accept inherited stocks? If you do leave behind rental property or a vacation home, can it be easily sold? These types of issues are generally not hard to resolve, but the more prepared your heirs are for their inheritance, the quicker they can take whatever actions are needed. Are they prepared to handle any taxes that may result from the inheritance? Unless you have a very large estate, your heirs likely wont face federal estate taxes. (In 2024, the first $13.61 million of an estate is exempt from federal estate taxes.) However, other types of taxes may apply. A few states assess state inheritance taxes, and your heirs could incur federal and/or state income taxes when they withdraw money from inherited assets funded with pre-tax dollars, such as some retirement accounts. They could also face capital gains taxes when they sell inherited assets, such as stocks, for more than they were worth at the time of the inheritance. In any case, inheritance-related taxes can be complex, so you and your family and other heirs should discuss these issues with your tax advisor. Will they be liable for any outstanding expenses? If you have developed a comprehensive estate plan, it's unlikely your heirs will be on the hook for any outstanding expenses, such as credit card balances or funeral costs. If you do still carry a mortgage, though, and you are planning on leaving your house to your heirs, they may want to be prepared to act quickly to sell it. When leaving an inheritance, theres a lot involved emotionally, financially and legally. So, do whatever you can to make the entire process as easy as possible for your loved ones. By communicating your wishes regarding the inheritance, and by considering all the issues that may arise, you can go a long way toward achieving the outcomes you desire. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL 34205941-462-2445chad.chaote@edwardjones.comThis article was written by Edward Jones for use by your local Edward Jones Financial Advisor.
Wheelchair ramps and other accessibility products are crucial for individuals who have suffered from a stroke or heart attack. These conditions can lead to physical limitations, such as difficulty with mobility, balance, and coordination, which can make everyday tasks and activities a challenge.A stroke or heart attack can impact a persons life in many ways, including the ability to enter and exit their home. The installation of a wheelchair ramp can provide a safer, more convenient means of access to and from the home, improving overall independence and quality of life.In addition to being useful for individuals who have suffered a stroke or heart attack, wheelchair ramps and other accessibility products can also be beneficial for those with other physical limitations, such as arthritis, multiple sclerosis, and spinal cord injuries.Here, we will discuss the importance of wheelchair ramps and accessibility products for those who have survived a stroke or heart attack, and how they can make a significant difference in improving overall independence and quality of life.The Benefits of Wheelchair Ramps for People with Stroke or Heart AttackImproved MobilityThe primary benefit of a wheelchair ramp is improved mobility and independence. A ramp allows individuals who use a wheelchair or walker to safely enter and exit their home, which can increase their independence and reduce the risk of falls and other accidents. Additionally, ramps can provide a convenient means of accessing public buildings, such as grocery stores, doctors offices, and other essential locations.ConvenienceWheelchair ramps are also convenient for individuals who experience mobility challenges as a result of a stroke or heart attack. Traditional steps can be difficult to navigate, especially for those who have limited mobility, balance, or coordination. A ramp eliminates the need to navigate stairs, reducing the risk of falls and other accidents. Additionally, ramps are typically wider than steps, making it easier for individuals to maneuver and move about regardless of whether or not they use a mobility aid.Increased SafetyOne of the most important benefits of wheelchair ramps for individuals who have suffered from a stroke or heart attack is increased safety. Steps can be slippery, especially in inclement weather, increasing the risk of falls and other accidents. A ramp provides a stable, slip-resistant surface that can be used in all weather conditions. Additionally, ramps typically have handrails, providing additional support and stability for individuals who need it.Cost-Effective SolutionWheelchair ramps can also be a cost-effective solution for individuals who have suffered from a stroke or heart attack. Traditional home modifications can be expensive and may not be covered by insurance. A ramp is a more affordable option and may be covered by Medicaid or other insurance programs. Additionally, ramps can be installed quickly and easily, reducing the disruption to the home and daily routines.The Importance of Accessibility ProductsIn addition to wheelchair ramps, there are many other accessibility products available that can make a significant difference in the lives of individuals who have suffered from a stroke or heart attack. These products can improve overall independence and quality of life, making it easier for individuals to perform everyday tasks and activities.Grab BarsGrab bars are a simple but effective accessibility product that can be installed in the bathroom, bedroom, and other areas of the home. They provide a secure and stable surface for individuals who need support when getting in and out of the shower or bath, when using the toilet, or when sitting and standing in various areas around the home. Grab bars are available in a variety of styles and finishes, making it easy to find a product that complements the dcor of the home.Stair LiftsStair lifts are a more advanced accessibility product that can be installed in homes with multiple levels. These devices allow individuals to safely navigate stairs, eliminating the need to climb steps. Stair lifts come in a variety of styles and designs, including straight and curved options, to accommodate different types of staircases. There are also options for both indoor and outdoor staircases.Transfer BenchesTransfer benches are another useful accessibility product for individuals who have suffered from a stroke or heart attack. These benches provide a safe and stable surface for individuals to transfer in and out of the shower or bath. Transfer benches have a slip-resistant seat and backrest, and can be adjusted to accommodate different heights.ElevatorsFor individuals who live in multi-level homes, elevators can be a convenient and cost-effective solution for improving accessibility. These devices can be installed in the home, providing individuals with a safe and secure means of accessing different levels of the home. Elevators can be customized to meet the specific needs of the individual and can be equipped with safety features, such as emergency stop buttons and intercoms.ConclusionWheelchair ramps and other accessibility products are essential for individuals who have suffered from a stroke or heart attack. These products can improve overall mobility, convenience, safety, and independence, making it easier for individuals to perform everyday tasks and activities. Whether you are looking to install a ramp, grab bars, stair lifts, transfer benches, or elevators, it is important to work with a reputable and experienced provider to ensure the best possible outcome. Amramp Accessibility is a leading provider of accessibility solutions and is dedicated to helping individuals with physical limitations live a more independent and fulfilling life. For more information please call, 888-715-7598.
Hello, I'm Chad Choate a dedicated financial advisor in Bradenton, FL, I began my career with Edward Jones in 2017. As a financial advisor, I want to find out what's important to you and help you build personalized strategies to achieve your goals. As a lifelong Manatee County resident, I graduated from the University of South Florida and was a teacher in Manatee County before joining Edward Jones. My driving force is to change people's lives in a positive way, and what better place than my home to do that. Whether you're planning for retirement, saving for college for children or grandchildren or just trying to protect the financial future of the ones you care for the most, we can work together to develop specific strategies to help you achieve your goals. We will also monitor your progress to help make sure you stay on track or determine if any adjustments need to be made. Throughout it all, we're dedicated to providing you with top-notch client service. But we're not alone. Thousands of people and advanced technology support from our office can help ensure you receive the most current and comprehensive guidance. In addition, we welcome the opportunity to work with your attorney, accountant and other trusted professionals to deliver a comprehensive strategy that leverages everyone's expertise. Working together, we can help you develop a complete, tailored strategy to help you achieve your financial goals. I currently volunteer with the Manatee Hurricane football Broadcast and Booster Club, serve on my church's trustees council and have previously served as a leader in Young Life. I am a member of the Manatee Chamber of Commerce and an alumnus of their Leadership Manatee program. I have been married to my childhood sweetheart, Ashley, for 15 years and we have a son, Wesley, and daughter, Camryn. We enjoy watching our children play their sports and traveling as a family.
Experience and BackgroundI am a financial advisor in Bradenton, FL, and began my career with Edward Jones in 2017. As a financial advisor, I want to find out what's important to you and help you build personalized strategies to achieve your goals.As a lifelong Manatee County resident, I graduated from the University of South Florida and was a teacher in Manatee County before joining Edward Jones. My driving force is to change people's lives in a positive way, and what better place than my home to do that.Whether you're planning for retirement, saving for college for children or grandchildren, or just trying to protect the financial future of the ones you care for the most, we can work together to develop specific strategies to help you achieve your goals. We will also monitor your progress to help make sure you stay on track or determine if any adjustments need to be made. Throughout it all, we're dedicated to providing you with top-notch client service.But we're not alone. Thousands of people and advanced technology support our office so that we can help ensure you receive the most current and comprehensive guidance. In addition, we welcome the opportunity to work with your attorney, accountant and other trusted professionals to deliver a comprehensive strategy that leverages everyone's expertise. Working together, we can help you develop a complete, tailored strategy to help you achieve your financial goals.I currently volunteer with the Manatee Hurricane football Broadcast and Booster Club, serve on my church's trustees council and have previously served as a leader in Young Life. I am a member of the Manatee Chamber of Commerce and an alumnus of their Leadership Manatee program.I have been married to my childhood sweetheart, Ashley, for 15 years and we have a son, Wesley, and daughter, Camryn. We enjoy watching our children play their sports and traveling as a family.
Hello, I'm Chad Choate a dedicated financial advisor in Bradenton, FL, I began my career with Edward Jones in 2017. As a financial advisor, I want to find out what's important to you and help you build personalized strategies to achieve your goals. As a lifelong Manatee County resident, I graduated from the University of South Florida and was a teacher in Manatee County before joining Edward Jones. My driving force is to change people's lives in a positive way, and what better place than my home to do that. Whether you're planning for retirement, saving for college for children or grandchildren or just trying to protect the financial future of the ones you care for the most, we can work together to develop specific strategies to help you achieve your goals. We will also monitor your progress to help make sure you stay on track or determine if any adjustments need to be made. Throughout it all, we're dedicated to providing you with top-notch client service. But we're not alone. Thousands of people and advanced technology support from our office can help ensure you receive the most current and comprehensive guidance. In addition, we welcome the opportunity to work with your attorney, accountant and other trusted professionals to deliver a comprehensive strategy that leverages everyone's expertise. Working together, we can help you develop a complete, tailored strategy to help you achieve your financial goals. I currently volunteer with the Manatee Hurricane football Broadcast and Booster Club, serve on my church's trustees council and have previously served as a leader in Young Life. I am a member of the Manatee Chamber of Commerce and an alumnus of their Leadership Manatee program. I have been married to my childhood sweetheart, Ashley, for 15 years and we have a son, Wesley, and daughter, Camryn. We enjoy watching our children play their sports and traveling as a family.