April 25, 2025 • 27 mins
#SafeMoney #JonHeischmanSr #Psyched2Retire #InheritedIRA
Beyond having the income in place for retirement, it is also important to plan for the psychological transition into retirement. 35% of retirees are concerned about having too much time on their hands. In this episode, host Jon Heischman, Senior discusses this and also touches on inherited IRAs.
Call Jon at (888) 426-0177 with questions, comments or to get a free copy of Top 10 IRA Mistakes and How to Avoid Tax Traps. Visit www.heischmanfs.com/ for additional information.
Beyond having the income in place for retirement, it is also important to plan for the psychological transition into retirement. 35% of retirees are concerned about having too much time on their hands. In this episode, host Jon Heischman, Senior discusses this and also touches on inherited IRAs.
Call Jon at (888) 426-0177 with questions, comments or to get a free copy of Top 10 IRA Mistakes and How to Avoid Tax Traps. Visit www.heischmanfs.com/ for additional information.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
People really don't know what their expenses will because they
don't know how long that they're going to live.
Speaker 2 (00:06):
The Americans are worried they won't have enough safe for retirement.
Now more than ever, retirement's going to cost for many
folks over a million dollars.
Speaker 3 (00:14):
He is no short thing in investing, but a lot
of people think that annuities may come close to that.
It's going to more safe, safe, safe, safe things that
they know. If they know they're going to need that
money to supplement the retirement, well then you can't play
that rest. This is the Safe Money and Retirement Show.
But John Heischman Senior, Founder and partner of Heisman Financial
Services serving the Columbus and surrounding areas. John specializes in
(00:37):
educating pre retirees and retirees about safe money strategies and ideas.
Now it's the Safe Money and Retirement Show. Here's John Heischman, Senior.
Speaker 2 (00:48):
Welcome to this week's episode of The Safe Money and
Retirement Show. I'm your host, John Heischmann with Heischman Financial
Service is here in Reynoldsburg, Ohio. I hope all my
listeners are doing well today, enjoying their weekend and very
(01:10):
grateful that you took a half hour tuned into my
show and get more ideas that are going to help
you with your retirement. Before I get started, I want
to give you the number to call to request any
information that I offer, and if you have questions or
(01:33):
concerns about your situation, by all means, that's why I'm
here to help you. That number is eight eight eight
four to two six zero one seven seven. That number
is available twenty four to seven eight eight eight four
(01:54):
to two six zero one seventy seven. When we think
of retirement, almost always it has to do with money,
which it should. However, I think there's too much emphasis
placed on the financial aspect of retirement, as to growing
(02:20):
your retirement savings, structuring an income plan, and making sure
you're not going to outlive that income plan. But we've
got to keep in perspective the psychological aspect of retirement.
It's a huge transition in life. Think about it. When
(02:45):
you go from thirty thirty five, maybe forty some even
fifty years of working and now you're retired. It's a
big impact, a big shift within a person his life.
About two weeks ago, I had a meeting with a
client who I've been working with probably going on thirty
(03:11):
years now. He's had growth. His plan is set up
to where he has several different sources of income, two
of which are guaranteed, and financially he's going to be
set during his retirement. But he wanted to meet with
(03:32):
me to discuss whether or not he was ready for
retirement and what he was going to do. Not only
was he concerned, but he was actually scared too much
free time, and he didn't have a lot of hobbies
(03:53):
and wasn't particularly interested in traveling, and just very concerned. Unfortunately,
his wife passed about three years ago. So he's a
single male in his late sixties wanting to retire, but
(04:14):
as I mentioned, he's scared of the thought of having
too much time on his hands. You know, I think
everyone gets to a point where it's time to retire,
and that's why some retire early. Others may never retire.
But what I have seen from my clients, in those
(04:37):
I've spoke to over the years, when they really start
thinking about it's time to retire, financially they're in good shape.
But there's always going to be a group. I believe
the numbers are right around thirty five percent, maybe a
little bit more that are worried what are they going
(05:00):
to do during retirement? Too much time on their hands.
When he came in, as I mentioned a couple of
weeks ago, we sat in the conference room and just
had a wonderful talk about retirement, and I think it
lasted about two hours, and I gave him my perspective
(05:24):
as to what I would do if I was retired,
what I've seen other clients of mine do now that
they're retired, and I kind of helped him think more
about what he was going to do with his time,
and after going over the options the ideas, he left
(05:48):
and felt much better, had some direction and had more
of an idea as to where he was going to
go and do in retirement. Always the option to continue
to work, either at the same job or take on
(06:09):
a new profession, a new job, something entirely different, whether
it be full time or part time, and we did
talk about that, but he was to the point where
he just didn't want to work anymore, and I encouraged him.
If you're not going to work, you need to stay busy.
(06:33):
And I think it's a big part of retirement planning. Again,
as I mentioned, assuming an individual can retire from the
financial standpoint. If not, there really isn't a choice a
person who's going to have to extend their career by
(06:54):
working longer for a couple of more years until they
get to the point to where they can. What a
retiree doesn't want to do is to lose their sense
of purpose, their identity when they retire, when they stop working.
(07:16):
There have been different polls that have gone out over
the course of time, test observations, controlled questions that have
been asked of certain group of individual retirees, and it's
astonishing to me that statistically one third of retirees today
(07:42):
experience or have experienced a state of depression as a
result of retirement. When you retire and all of a sudden,
you no longer have that one thing that was in
your life that you had to do, you had to
(08:04):
go every day, you can go into a state of depression.
It's a loss of routine and I get that, I
can see how that would happen. Plus, that social connection
is gone. Those employees you see every day, probably you
(08:28):
had lunch with them and became friends with many is
gone when you leave that job. And what you don't
want to do is be affected by a depressed situation
or develop health problems because all of a sudden, the
(08:50):
retiree has become inactive, not involved, no socializing, which I
think can only shorten a retirees life expectancy. There have
been many times that I have consulted with a client
(09:11):
and made the recommendation that well, before you retire, start
planning what are you going to do with your time
during retirement. Start some hobbies or interests, now work into
how you're going to fill your time during retirement. And
(09:36):
I think by planning ahead we can prevent the problem
with the psychological situation in retirement. We all plan financially,
but there are a lot that don't even think about
what they're going to do during retirement. So if you're
(10:00):
thinking of retirement, do two things. Make sure you're financially
set to where you can retire. If you want a
second opinion, give me a call. Secondly, start thinking about
what are you going to do, And if you need
some ideas or need to talk to me about that
(10:25):
part of retirement, I'm here to listen. And as I
mentioned earlier, I've been able to help clients prepare and
start thinking about the time you're going to have when
you're retired eight eight eight four two six zero one
seven seven. You can reach me at that number. I'm
(10:47):
going to give you my office number as well here
in Rentalsburg six one four eight six one seven zero
five five. Visit my website Heischmann f S dot com,
h E I S C h M A n f
(11:10):
S dot com. And by the way, I don't want
to forget that I do have a new supply of
the book I sponsor entitled Top ten IRA Mistakes. It's
especially valuable to those that are getting ready to retire
(11:32):
and have four oh one case or four O three
b's any retirement plan that is a qualified plan, advice
what to look for and how to make the right
decisions for that rollover account. I'd be happy to send
(11:52):
you a book. It costs you nothing and there's absolutely
no obligation. Top ten IRA Mistakes triple A four to
two six zero one seventy seven. So stay tuned. I'm
going to take a short break at this time. I'll
(12:14):
be right back bringing you the second half of the
Safe Money and Retirement Show.
Speaker 4 (12:22):
Thanks for listening to The Safe Money and Retirement Show
with John Heisman, for more information, call one eight eight
eight or two six zero one seventy seven. That's one
eight eight eight or two six zero one seven seven,
or visit their website at heischmanfs dot com. More of
the Safe Money and Retirement Show in a moment.
Speaker 1 (12:49):
Avoiding mistakes can save owners of iras four oh one
KS and TSP plans, as well as other retirement plans
a fortune in taxes.
Speaker 5 (13:05):
Penalties, fees and loads. These potential mistakes are addressed in
the free book entitled Top ten IRA Mistakes. This is
John Heischmann from the Safe Money and Retirement Show offering
a complimentary copy by calling eight eight eight four to
(13:28):
two six zero one seven seven again that's triple eight
four to two six zero one seven seven.
Speaker 4 (13:49):
Welcome back to the Safe Money and Retirement Show with
John Heisman. To contact John, the number to call is
one eight eight eight or two six zero one seven seven.
That's one eight eight eight or two six zero one
seven seven. Once again, here's John Heisman.
Speaker 2 (14:07):
Welcome back to the Safe Money and Retirement Show. I'm
your host, John Heischmann. I want to take the rest
of the show this morning to talk about qualified plans
and the baby Boomer generation, which I am part of
(14:28):
that generation, and there are approximately ten thousand baby Boomers
reaching retirement age every day, and they also control the
majority of the wealth of America. How well this generation
(14:49):
manages this money is of enormous importance to everyone, and
most of you know that those born between nineteen forty
six and nineteen sixty four are in this generation. The
majority of boomers will have at least one, if not several,
(15:15):
qualified retirement accounts. And when I say qualified, this is
in the area of iras four oh one k's, four
h three b's, TSP plans, pension plans. We have to
include those because most companies that have a pension plan
(15:37):
are offering their retirees the option to take a lump
sum payout. If you're a boomer, which many listen to
this show, and you're part of the group with the
highest probability of having your own IRA and these other
(15:59):
qualified retail hirement plans that I just mention. Also, this
generation will be inheriting iras from their parents, probably more
so than any other generation. It's very important to note
that the inherited iras that you may receive, they're different
(16:26):
than your personal IRA, which distributions from these accounts can
create mistakes, costly mistakes when it comes to the irs.
So let me touch on the inherited IRA or it
(16:47):
could be a four to one K. This must be
treated differently than your individual IRA or for a one
K because you cannot take or I should say delay
taking distributions from that inherited qualified account. When I say delay,
(17:12):
most retirees will delay taking the required minimum distribution until
age seventy three, but not the inherited accounts. However, you're
still in control of your money even when you inherit
an IRA or that four a one K account. You
(17:34):
can decide the best distribution method for your needs. You're
going to have two options. Option one. If you decide
to use all of the money now from an inherited IRA,
you'll need to pay all of the income tax by
the end of the tenth year after you inherited that account.
(17:58):
So if you're still working and have earned income, this
approach could put you into a higher marginal tax bracket.
So let's talk about option too. You can pay a
portion of the tax each year as long as all
of the taxes are paid within that ten year rule.
(18:20):
This approach will add taxable income each year, but may
help you stay in your current marginal tax bracket. One
other note about that is after inheriting an IRA, under
the current rules, you cannot convert the inherited IRA to
(18:42):
a roth ira. We've got to make sure we get
this right because it's not unusual to see a retiree
or soon to be have one or two inherited iras.
One or two may be more of their own individual iras,
(19:06):
and let's say a four to one K plan. Not
only do we need to plan how distributions are going
to be taken for income, but we also need to
plan for the tax aspect of receiving these distributions. You've
(19:27):
heard the old saying everybody is different, and they are.
So when you're in that situation where you have multiple
accounts and a couple of inherited accounts, you need planning
advice based on what distributions are you going to take first,
what portion of accounts or all accounts that could be
(19:51):
converted to a roth ira if it fits into your planning,
your best interest and that's where or I think retirement
income planning becomes fun, challenging and making sure it's done
correctly I'm going to give you the number to call
(20:12):
because I know a lot of you listening will fit
into that situation. And even if you're not ready to retire,
it's smart to look ahead as to what you may
be facing. Ada eight eight four two six zero one
(20:34):
seven seven. Once again that number is triple eight four
to two six zero one seventy seven. I'd love the
opportunity to help sort things out, give you some ideas
to think about for the future. One thing about this
(20:54):
generation is big business. Everyone wants a bite of your
retirement savings. Everyone is going to be ready to give
you advice, but keep in mind that all advisors or
planners may not be skilled in the distribution rules, and
(21:20):
not getting the correct advice can lead to one of
many irs tax traps. So make sure you're armed with
the right information and who is giving sound financial advice
to make sure these accounts are set up correctly and
(21:44):
will benefit you. And if you're married as well as
the surviving spouse, you've got to keep in mind retirement
planning has to make sure that the plan continues use
to the surviving spouse and not just the client as well.
(22:08):
Earlier I mentioned a roth IRA. You cannot convert that
inherited ira, but you do have the option to convert
a non ira or for a one k to a
roth ira. Now you do pay the tax upfront whether
you convert all or partial, but you'll be able to
(22:31):
enjoy a tax free income distribution later. A couple of
things that I want to point out. A non spousal
beneficiary cannot become the owner of an inherited ira, or
they can't deposit that money into their own personal ira.
(22:56):
So making either one of these mistakes is going to
cause the inherited ira to become immediately taxable. Non spousal
beneficiaries cannot take any distributions to an inherited ira. Here's
(23:16):
another point. If the deceased account owner was past the
required beginning date after turning aged seventy three and had
not taken the required distribution during the year of death,
(23:37):
the inherited non spousal beneficiaries must take a distribution equal
to the distribution of the IRA owner which would have
taken if still living. Just another little detail that we
must be very careful of and make sure you don't
(23:58):
make a costly man stake. If you're a baby boomer
and you've contributed to your personal IRA four oh one K,
four h three B even a four fifty seven plan,
any other qualified retirement plan, and have inherited or let's say,
(24:20):
expect to inherit a qualified plan. Please feel free to
contact me for help to make sure you get the
right advice as to what is best for your situation
on all of these accounts that many do have. I've
(24:40):
seen what I call some wild situations where potential clients
have several four oh one k's that are still with
previous employers, they have their own IRA or two, and
they have inherited or they're going to inherit one or
(25:04):
two iras from parents or brothers or sisters. I'll give
you my number again a day eight four two six
zero one seventy seven triple eight four two six zero
(25:25):
one seventy seven. A lot of this information is in
the book that I sponsor, Top ten IRA Mistakes How
to Avoid the IRA Tax Trap. It's yours for the asking,
no cost, no obligation, and I would like all of
(25:47):
my listeners to have a copy. All you have to
do is call the number I give you request a
copy of the Top ten IRA Mistakes. So I'll give
you the number one more time a day date four
two six zero one seven seven. I appreciate you joining
me this morning and listening to the Safe Money and
(26:10):
Retirement Show. I'll be back next week at the same time,
same stations, so please tune.
Speaker 3 (26:18):
In the Safe Money and Retirement Joe John Heisman Senior.
To get in touch with John, call one AA eight
four two six zero one seven seven. That's one triple
eight four two six zero one seven seven. For more
information about Heisman Financial Services, visit their website Heisman FS
(26:41):
dot com. That's h E I S C h M
A n f S dot com. Join us again next
time for the Safe Money and Retirement Joe with John
Heisman Senior,
People really don't know what their expenses will because they
don't know how long that they're going to live.
Speaker 2 (00:06):
The Americans are worried they won't have enough safe for retirement.
Now more than ever, retirement's going to cost for many
folks over a million dollars.
Speaker 3 (00:14):
He is no short thing in investing, but a lot
of people think that annuities may come close to that.
It's going to more safe, safe, safe, safe things that
they know. If they know they're going to need that
money to supplement the retirement, well then you can't play
that rest. This is the Safe Money and Retirement Show.
But John Heischman Senior, Founder and partner of Heisman Financial
Services serving the Columbus and surrounding areas. John specializes in
(00:37):
educating pre retirees and retirees about safe money strategies and ideas.
Now it's the Safe Money and Retirement Show. Here's John Heischman, Senior.
Speaker 2 (00:48):
Welcome to this week's episode of The Safe Money and
Retirement Show. I'm your host, John Heischmann with Heischman Financial
Service is here in Reynoldsburg, Ohio. I hope all my
listeners are doing well today, enjoying their weekend and very
(01:10):
grateful that you took a half hour tuned into my
show and get more ideas that are going to help
you with your retirement. Before I get started, I want
to give you the number to call to request any
information that I offer, and if you have questions or
(01:33):
concerns about your situation, by all means, that's why I'm
here to help you. That number is eight eight eight
four to two six zero one seven seven. That number
is available twenty four to seven eight eight eight four
(01:54):
to two six zero one seventy seven. When we think
of retirement, almost always it has to do with money,
which it should. However, I think there's too much emphasis
placed on the financial aspect of retirement, as to growing
(02:20):
your retirement savings, structuring an income plan, and making sure
you're not going to outlive that income plan. But we've
got to keep in perspective the psychological aspect of retirement.
It's a huge transition in life. Think about it. When
(02:45):
you go from thirty thirty five, maybe forty some even
fifty years of working and now you're retired. It's a
big impact, a big shift within a person his life.
About two weeks ago, I had a meeting with a
client who I've been working with probably going on thirty
(03:11):
years now. He's had growth. His plan is set up
to where he has several different sources of income, two
of which are guaranteed, and financially he's going to be
set during his retirement. But he wanted to meet with
(03:32):
me to discuss whether or not he was ready for
retirement and what he was going to do. Not only
was he concerned, but he was actually scared too much
free time, and he didn't have a lot of hobbies
(03:53):
and wasn't particularly interested in traveling, and just very concerned. Unfortunately,
his wife passed about three years ago. So he's a
single male in his late sixties wanting to retire, but
(04:14):
as I mentioned, he's scared of the thought of having
too much time on his hands. You know, I think
everyone gets to a point where it's time to retire,
and that's why some retire early. Others may never retire.
But what I have seen from my clients, in those
(04:37):
I've spoke to over the years, when they really start
thinking about it's time to retire, financially they're in good shape.
But there's always going to be a group. I believe
the numbers are right around thirty five percent, maybe a
little bit more that are worried what are they going
(05:00):
to do during retirement? Too much time on their hands.
When he came in, as I mentioned a couple of
weeks ago, we sat in the conference room and just
had a wonderful talk about retirement, and I think it
lasted about two hours, and I gave him my perspective
(05:24):
as to what I would do if I was retired,
what I've seen other clients of mine do now that
they're retired, and I kind of helped him think more
about what he was going to do with his time,
and after going over the options the ideas, he left
(05:48):
and felt much better, had some direction and had more
of an idea as to where he was going to
go and do in retirement. Always the option to continue
to work, either at the same job or take on
(06:09):
a new profession, a new job, something entirely different, whether
it be full time or part time, and we did
talk about that, but he was to the point where
he just didn't want to work anymore, and I encouraged him.
If you're not going to work, you need to stay busy.
(06:33):
And I think it's a big part of retirement planning. Again,
as I mentioned, assuming an individual can retire from the
financial standpoint. If not, there really isn't a choice a
person who's going to have to extend their career by
(06:54):
working longer for a couple of more years until they
get to the point to where they can. What a
retiree doesn't want to do is to lose their sense
of purpose, their identity when they retire, when they stop working.
(07:16):
There have been different polls that have gone out over
the course of time, test observations, controlled questions that have
been asked of certain group of individual retirees, and it's
astonishing to me that statistically one third of retirees today
(07:42):
experience or have experienced a state of depression as a
result of retirement. When you retire and all of a sudden,
you no longer have that one thing that was in
your life that you had to do, you had to
(08:04):
go every day, you can go into a state of depression.
It's a loss of routine and I get that, I
can see how that would happen. Plus, that social connection
is gone. Those employees you see every day, probably you
(08:28):
had lunch with them and became friends with many is
gone when you leave that job. And what you don't
want to do is be affected by a depressed situation
or develop health problems because all of a sudden, the
(08:50):
retiree has become inactive, not involved, no socializing, which I
think can only shorten a retirees life expectancy. There have
been many times that I have consulted with a client
(09:11):
and made the recommendation that well, before you retire, start
planning what are you going to do with your time
during retirement. Start some hobbies or interests, now work into
how you're going to fill your time during retirement. And
(09:36):
I think by planning ahead we can prevent the problem
with the psychological situation in retirement. We all plan financially,
but there are a lot that don't even think about
what they're going to do during retirement. So if you're
(10:00):
thinking of retirement, do two things. Make sure you're financially
set to where you can retire. If you want a
second opinion, give me a call. Secondly, start thinking about
what are you going to do, And if you need
some ideas or need to talk to me about that
(10:25):
part of retirement, I'm here to listen. And as I
mentioned earlier, I've been able to help clients prepare and
start thinking about the time you're going to have when
you're retired eight eight eight four two six zero one
seven seven. You can reach me at that number. I'm
(10:47):
going to give you my office number as well here
in Rentalsburg six one four eight six one seven zero
five five. Visit my website Heischmann f S dot com,
h E I S C h M A n f
(11:10):
S dot com. And by the way, I don't want
to forget that I do have a new supply of
the book I sponsor entitled Top ten IRA Mistakes. It's
especially valuable to those that are getting ready to retire
(11:32):
and have four oh one case or four O three
b's any retirement plan that is a qualified plan, advice
what to look for and how to make the right
decisions for that rollover account. I'd be happy to send
(11:52):
you a book. It costs you nothing and there's absolutely
no obligation. Top ten IRA Mistakes triple A four to
two six zero one seventy seven. So stay tuned. I'm
going to take a short break at this time. I'll
(12:14):
be right back bringing you the second half of the
Safe Money and Retirement Show.
Speaker 4 (12:22):
Thanks for listening to The Safe Money and Retirement Show
with John Heisman, for more information, call one eight eight
eight or two six zero one seventy seven. That's one
eight eight eight or two six zero one seven seven,
or visit their website at heischmanfs dot com. More of
the Safe Money and Retirement Show in a moment.
Speaker 1 (12:49):
Avoiding mistakes can save owners of iras four oh one
KS and TSP plans, as well as other retirement plans
a fortune in taxes.
Speaker 5 (13:05):
Penalties, fees and loads. These potential mistakes are addressed in
the free book entitled Top ten IRA Mistakes. This is
John Heischmann from the Safe Money and Retirement Show offering
a complimentary copy by calling eight eight eight four to
(13:28):
two six zero one seven seven again that's triple eight
four to two six zero one seven seven.
Speaker 4 (13:49):
Welcome back to the Safe Money and Retirement Show with
John Heisman. To contact John, the number to call is
one eight eight eight or two six zero one seven seven.
That's one eight eight eight or two six zero one
seven seven. Once again, here's John Heisman.
Speaker 2 (14:07):
Welcome back to the Safe Money and Retirement Show. I'm
your host, John Heischmann. I want to take the rest
of the show this morning to talk about qualified plans
and the baby Boomer generation, which I am part of
(14:28):
that generation, and there are approximately ten thousand baby Boomers
reaching retirement age every day, and they also control the
majority of the wealth of America. How well this generation
(14:49):
manages this money is of enormous importance to everyone, and
most of you know that those born between nineteen forty
six and nineteen sixty four are in this generation. The
majority of boomers will have at least one, if not several,
(15:15):
qualified retirement accounts. And when I say qualified, this is
in the area of iras four oh one k's, four
h three b's, TSP plans, pension plans. We have to
include those because most companies that have a pension plan
(15:37):
are offering their retirees the option to take a lump
sum payout. If you're a boomer, which many listen to
this show, and you're part of the group with the
highest probability of having your own IRA and these other
(15:59):
qualified retail hirement plans that I just mention. Also, this
generation will be inheriting iras from their parents, probably more
so than any other generation. It's very important to note
that the inherited iras that you may receive, they're different
(16:26):
than your personal IRA, which distributions from these accounts can
create mistakes, costly mistakes when it comes to the irs.
So let me touch on the inherited IRA or it
(16:47):
could be a four to one K. This must be
treated differently than your individual IRA or for a one
K because you cannot take or I should say delay
taking distributions from that inherited qualified account. When I say delay,
(17:12):
most retirees will delay taking the required minimum distribution until
age seventy three, but not the inherited accounts. However, you're
still in control of your money even when you inherit
an IRA or that four a one K account. You
(17:34):
can decide the best distribution method for your needs. You're
going to have two options. Option one. If you decide
to use all of the money now from an inherited IRA,
you'll need to pay all of the income tax by
the end of the tenth year after you inherited that account.
(17:58):
So if you're still working and have earned income, this
approach could put you into a higher marginal tax bracket.
So let's talk about option too. You can pay a
portion of the tax each year as long as all
of the taxes are paid within that ten year rule.
(18:20):
This approach will add taxable income each year, but may
help you stay in your current marginal tax bracket. One
other note about that is after inheriting an IRA, under
the current rules, you cannot convert the inherited IRA to
(18:42):
a roth ira. We've got to make sure we get
this right because it's not unusual to see a retiree
or soon to be have one or two inherited iras.
One or two may be more of their own individual iras,
(19:06):
and let's say a four to one K plan. Not
only do we need to plan how distributions are going
to be taken for income, but we also need to
plan for the tax aspect of receiving these distributions. You've
(19:27):
heard the old saying everybody is different, and they are.
So when you're in that situation where you have multiple
accounts and a couple of inherited accounts, you need planning
advice based on what distributions are you going to take first,
what portion of accounts or all accounts that could be
(19:51):
converted to a roth ira if it fits into your planning,
your best interest and that's where or I think retirement
income planning becomes fun, challenging and making sure it's done
correctly I'm going to give you the number to call
(20:12):
because I know a lot of you listening will fit
into that situation. And even if you're not ready to retire,
it's smart to look ahead as to what you may
be facing. Ada eight eight four two six zero one
(20:34):
seven seven. Once again that number is triple eight four
to two six zero one seventy seven. I'd love the
opportunity to help sort things out, give you some ideas
to think about for the future. One thing about this
(20:54):
generation is big business. Everyone wants a bite of your
retirement savings. Everyone is going to be ready to give
you advice, but keep in mind that all advisors or
planners may not be skilled in the distribution rules, and
(21:20):
not getting the correct advice can lead to one of
many irs tax traps. So make sure you're armed with
the right information and who is giving sound financial advice
to make sure these accounts are set up correctly and
(21:44):
will benefit you. And if you're married as well as
the surviving spouse, you've got to keep in mind retirement
planning has to make sure that the plan continues use
to the surviving spouse and not just the client as well.
(22:08):
Earlier I mentioned a roth IRA. You cannot convert that
inherited ira, but you do have the option to convert
a non ira or for a one k to a
roth ira. Now you do pay the tax upfront whether
you convert all or partial, but you'll be able to
(22:31):
enjoy a tax free income distribution later. A couple of
things that I want to point out. A non spousal
beneficiary cannot become the owner of an inherited ira, or
they can't deposit that money into their own personal ira.
(22:56):
So making either one of these mistakes is going to
cause the inherited ira to become immediately taxable. Non spousal
beneficiaries cannot take any distributions to an inherited ira. Here's
(23:16):
another point. If the deceased account owner was past the
required beginning date after turning aged seventy three and had
not taken the required distribution during the year of death,
(23:37):
the inherited non spousal beneficiaries must take a distribution equal
to the distribution of the IRA owner which would have
taken if still living. Just another little detail that we
must be very careful of and make sure you don't
(23:58):
make a costly man stake. If you're a baby boomer
and you've contributed to your personal IRA four oh one K,
four h three B even a four fifty seven plan,
any other qualified retirement plan, and have inherited or let's say,
(24:20):
expect to inherit a qualified plan. Please feel free to
contact me for help to make sure you get the
right advice as to what is best for your situation
on all of these accounts that many do have. I've
(24:40):
seen what I call some wild situations where potential clients
have several four oh one k's that are still with
previous employers, they have their own IRA or two, and
they have inherited or they're going to inherit one or
(25:04):
two iras from parents or brothers or sisters. I'll give
you my number again a day eight four two six
zero one seventy seven triple eight four two six zero
(25:25):
one seventy seven. A lot of this information is in
the book that I sponsor, Top ten IRA Mistakes How
to Avoid the IRA Tax Trap. It's yours for the asking,
no cost, no obligation, and I would like all of
(25:47):
my listeners to have a copy. All you have to
do is call the number I give you request a
copy of the Top ten IRA Mistakes. So I'll give
you the number one more time a day date four
two six zero one seven seven. I appreciate you joining
me this morning and listening to the Safe Money and
(26:10):
Retirement Show. I'll be back next week at the same time,
same stations, so please tune.
Speaker 3 (26:18):
In the Safe Money and Retirement Joe John Heisman Senior.
To get in touch with John, call one AA eight
four two six zero one seven seven. That's one triple
eight four two six zero one seven seven. For more
information about Heisman Financial Services, visit their website Heisman FS
(26:41):
dot com. That's h E I S C h M
A n f S dot com. Join us again next
time for the Safe Money and Retirement Joe with John
Heisman Senior,
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