What to Do With Inheritance Money? - 428

Your Money, Your Wealth

Business News, News, Business, Education, Investing

4.6 • 792 Ratings

🗓️ 9 May 2023

⏱️ 47 minutes

🔗️ Recording | iTunes | RSS

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Summary

So you're about to receive a large inheritance - what should you do with it? Joe and Big Al spitball on suddenly becoming $85 million dollars richer. Plus, is it nuts to semi-retire early? Should retirement contributions be split between Roth and traditional accounts? Can you do conversions to your kids' custodial Roth accounts? The fellas also spitball tax bracket-based Roth conversion strategies to help you pay the least amount of tax possible, long term, and they discuss required minimum distributions on inherited assets, and whether to pay off a 401(k) loan if it's "paying" you 8% per year.

Timestamps:

00:48 - I'm Inheriting Millions of Dollars. What Should I Do With It? (Michael, Binghamton, NY)
07:04 - Should I Split Retirement Contributions Between Roth and Traditional 457? (Kevin, Folsom, CA - voice)
11:34 - Should I Do 100% Roth TSP Contributions? Am I Nuts to Semi-Retire Early? (Derek, Seattle)
16:30 - Should We Do Roth Conversions to the Top of the 22% or 24% Tax Bracket? (Bill, Maryland)
23:53 - Is My CPA Correct That I Can Convert $24K to Roth Tax-Free? (Sam, Newark, NJ)
26:52 - Can I Convert 457 Money to My Kids' Custodial Roth Accounts? (Brian, Binghamton, NY)
32:50 - RMD Rules for Inherited Roth IRA and Traditional IRA (Dan, Brick, NJ)
38:48 - Should I Pay Off My 401(k) Loan That's "Paying" Me Over 8% Per Year? (Anon, Denver, CO)
42:59 - Comments on Keeping Employer IRA Money Separated
44:46 - The Derails

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0:00.0	So you're about to receive a large inheritance. What should you do with it? Today on Your Monnet,
0:06.2	Your Wealth podcast number 428, join Big Al Spitball on suddenly becoming $85 million richer.
0:14.0	Plus, is it nuts to semi-retire early? Should retirement contributions be split between Roth and
0:19.4	traditional accounts? Can you do conversions to your kids' custodial Roth accounts?
0:24.6	The fellows also spitball on tax bracket-based Roth conversion strategies to help you pay the least amount of tax possible long-term.
0:31.5	And they discuss required minimum distributions on inherited assets and whether to pay off a 401k loan if it's quote-unquote
0:38.3	paying you 8% per year. I'm producer Andy Last and here are the hosts of your money,
0:43.5	your wealth, Joe Anderson, CFP, and Big Alclopine CPA.
0:48.2	Got Michael from Bigginham.
0:51.4	Binghamton. Bigghamton. Bigghamton. And we've actually got two Binghamton people this week.
0:57.0	So apparently the words getting out in Binghamton.
0:59.0	Oh, yeah.
1:01.0	That billboard I put up.
1:03.6	I thought it was on the bus stop seats.
1:07.5	It's that too.
1:08.6	Yeah.
1:08.9	I'm all over the place.
1:10.7	Howdy there. My name's Michael, 24 years old.
1:13.1	I want to say thanks for answering my question last time about what to do about just getting started
1:17.1	with investing. My question now is a real doozy, and I love a spitball analysis as well.
1:23.2	So I'll be inheriting roughly $85 million after taxes for my grandparents in about a month and a half.
1:30.3	Wow.
	...

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