Thought Leadership Resource Center
Most Individual Retirement Accounts (IRAs) inherited from non-spouses post January 1, 2020 must be fully distributed within 10 years of receiving. During those 10 years, the beneficiary is required to take a distribution every year, and cannot simply take a lump sum in year 10.
Read MoreRoth IRA’s can be one of the more misunderstood wealth accumulation tools. Traditionally, Roth IRA’s are thought of as advantageous for those earlier in their career who are earlier in their career earnings curve. However, Roth IRAs can also be used for High Net Worth individuals as a longer term wealth accumulation tool. This article will cover how individuals can utilize the account and back door Roth contributions to maximize tax free earnings.
Read MoreThe Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 brought key changes to many of the most popular retirement accounts and strategies. Three years later on December 23, 2022, the long awaited sequel, aptly named SECURE Act 2.0, was passed as part of the year end spending bill. Secure 2.0 builds upon the changes made by the 2019 legislation and will likely impact even more individuals than the original act did. The following is a summary of the main provisions in SECURE 2.0 that are likely to impact individual investors.
Read MoreFor close to ten years, tax law rulings surrounding the Qualified Charitable Distribution (QCD) from an Individual Retirement Arrangement (IRA) to a charitable entity have flip-flopped as the tax code has grown and been modified over the years. But in 2015, the Protecting Americans from Tax Hikes (PATH) Act finally made the rules surrounding the QCD permanent, allowing individuals to give charitably while also minimizing income taxes from the Required Minimum Distribution (RMD).
Read MoreRetirement savers were given the opportunity to forgo Required Minimum Distributions (RMD) for 2020 as part of the CARES Act, which was passed into law in March of 2020 in response to the COVID-19 pandemic. This RMD relief applies to all types of IRAs (except Roth IRAs which do not require RMDs in the first place), 401(k), 403(b) and even includes inherited accounts. This benefit allows account holders to reduce their taxable income for calendar year 2020 and to preserve the tax deferred growth offered by these accounts for a bit longer. Of course, those that need the funds for living expenses are permitted to still take distributions as normal.
Read MoreDisclosures:
THIS COMMENTARY HAS BEEN PREPARED BY CLEARWATER CAPITAL PARTNERS. THE OPINIONS VOICED IN THIS MATERIAL ARE FOR GENERAL INFORMATION ONLY AND ARE NOT INTENDED TO PROVIDE OR BE CONSTRUED AS PROVIDING LEGAL, ACCOUNTING, OR SPECIFIC INVESTMENT ADVICE OR RECOMMENDATIONS FOR ANY INDIVIDUAL. ALL ECONOMIC DATA IS DERIVED FROM PUBLIC SOURCES BELIEVED TO BE RELIABLE. TO DETERMINE WHICH INVESTMENTS MAY BE APPROPRIATE FOR YOU, PLEASE CONSULT WITH US PRIOR TO INVESTING. INVESTING INVOLVES RISK WHICH MAY INCLUDE LOSS OF PRINCIPAL. This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, insurance products, or to adopt any investment strategy. The opinions expressed are as of the date of writing and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by Clearwater Capital Partners to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. Past performance is no guarantee of future results. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader. Investment involves risks. International investing involves additional risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. S&P 500 is a registered trademark of Standard & Poor’s Financial Services, a division of S&P Global (“S&P”) DOW JONES, DJ, DJIA and DOW JONES INDUSTRIAL AVERAGE are registered trademarks of Dow Jones Trademark Holdings (“Dow Jones”). The two main risks related to fixed-income investing are interest rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds. Credit risk refers to the possibility that the issuer of the bond will not be able to make principal and interest payments.
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