The Gov is sneaky with this in my opinion. In the first secure act they made most inherited 401k or similar plans to be fully withdrawn in 10 years, not the lifetime table like before. The average life span in the US currently is roughly from age 76-80 with women usually living longer. So lets take the average of age 78 as the life expectancy. Most kids happen around the age of 25-30 for the most part and currently the trend is getting older. Lets call it 28 for some simple math. When your parents pass you would be age 50, most likely in your prime earning years. Then you get this big 401k account and you get to add this on top of your regular income. This could easily put people in a tax bracket or two higher. This also allowed the account to only require RMD's for 3 years instead of 8 years like it would have been before the secure acts came about. So anyone that really saved and wanted to pass the money down will probably get a big chunk of it put towards taxes.
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By the time you start taking RMDs the age requirement will be 75. It's going up from 73 to 75 over the next 10 years.
The Gov is sneaky with this in my opinion. In the first secure act they made most inherited 401k or similar plans to be fully withdrawn in 10 years, not the lifetime table like before. The average life span in the US currently is roughly from age 76-80 with women usually living longer. So lets take the average of age 78 as the life expectancy. Most kids happen around the age of 25-30 for the most part and currently the trend is getting older. Lets call it 28 for some simple math. When your parents pass you would be age 50, most likely in your prime earning years. Then you get this big 401k account and you get to add this on top of your regular income. This could easily put people in a tax bracket or two higher. This also allowed the account to only require RMD's for 3 years instead of 8 years like it would have been before the secure acts came about. So anyone that really saved and wanted to pass the money down will probably get a big chunk of it put towards taxes.
Don’t you want to take it at 67 to maximize your spouse’s benefit?
I hate paying taxes but we all have to do it.😭😢😥😰😨 no RMDs for me. All my money 💰 is in Roth 💰 MONEY 💰 🎉🎉🎉🎉🎉