Wisdom Video Vault

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Tips, Tricks & Tools For Your Retirement Future

RETIREMENT PLANNING

You’ve been saving for your retirement for decades. Don’t undermine your own plans by making these 5 common mistakes when you retire.

If you’ve become the beneficiary of an IRA or other retirement account, it’s important to know your options. You can take the money out in one lump sum. This requires opening an account called an Inherited IRA in your name for correct IRS reporting. That lump sum may be taxable depending on whether the original contributions were pre- or post-tax. Or you can open an Inherited IRA and leave it alone to grow tax deferred.

If you’re changing jobs or retiring, it’s important to know the rules regarding moving funds from your employer sponsored retirement plan. The wrong move could cost you in income taxes and early withdrawal penalties.