[USMarine2001]

I am listed as a beneficiary on my late grandfathers IRA (roth maybe). Trying to figure out what my best option is....
Roll it into my company sponsored

Or cash it.

What makes it hard is they won't tell me how much, which in theory would help decide.

Pro/cons of each way?

 

[jiggin is livin]

I am listed as a beneficiary on my late grandfathers IRA (roth maybe). Trying to figure out what my best option is....
Roll it into my company sponsored

Or cash it.

What makes it hard is they won't tell me how much, which in theory would help decide.

Pro/cons of each way?

Do you need the money? Too me personally i think I should cash it if it weren't penalized too much (I have no idea if it is or not) and use it to clear debt. Car payments, mortgage, credit cards, then reinvest in the rest. Maybe if your grandpa liked fishing or hunting, a nice rod and reel, or shanty, or gun, in his honor would be cool. Just my opinion.

Kinda weird they won't tell you the amount. Isn't it technically yours now?

 

[Oldgrandman]

Don't know why they will not release the dollar amount? Seems weird but nevertheless, and with that being said.....

.....take the cash. You'll quickly find out the $$ amount and can always raise your employer contribution appropriately, to the desired "windfall," if it is an amount that would make it beneficial, otherwise you get some short term cash.....IMHO

 

[ESOX]

If the funds invested in are doing well, you can simply take the minimum annual disbursement, (based upon the value of the IRA and your projected lifespan). Make sure you take it every year or there is a huge tax penalty.......if you got the IRA last year or earlier and haven't taken the required disbursement(s) fire your financial adviser and buy some grease before filing your taxes. Get a CPA involved........

 

[ESOX]

http://www.forbes.com/sites/deborahljacobs/2013/05/01/inherited-ira-rules-what-you-need-to-know/

 

[USMarine2001]

If the funds invested in are doing well, you can simply take the minimum annual disbursement, (based upon the value of the IRA and your projected lifespan). Make sure you take it every year or there is a huge tax penalty.......if you got the IRA last year or earlier and haven't taken the required disbursement(s) fire your financial adviser and buy some grease before filing your taxes. Get a CPA involved........

I don't know how the funds are doing or worth much less what type of IRA it is. Seems as if the executor cannot get any information either. date of passing was 12/1 of last year. letter I got forwarded to me is dated dec 31. I thought I read that I had until dec 31 2015 or get hit.

 

[jiggin is livin]

I don't know how the funds are doing or worth much less what type of IRA it is. Seems as if the executor cannot get any information either. date of passing was 12/1 of last year. letter I got forwarded to me is dated dec 31. I thought I read that I had until dec 31 2015 or get hit.

I'd do like ESOX said and get a CPA. that'd be your best bet.

 

[Fabner1]

I am listed as a beneficiary on my late grandfathers IRA (roth maybe). Trying to figure out what my best option is....
Roll it into my company sponsored

Or cash it.

What makes it hard is they won't tell me how much, which in theory would help decide.

Pro/cons of each way?

Marine,

Do not cash the IRA! If you are the beneficiary take the info to Fidelity in Novi and have them do the transfer into your name! You will have to take out a small amount every year but the rest will grow tax deferred for the rest of your life (if not a Roth). You will need a certified death certificate for the transfer, I believe. This is a blessing and thank your lucky stars for such a thoughtful Grandpa! Don't cash it out!

Oldun

 

[Gearhead]

If you're the beneficiary, you should be able to transfer the funds to a Bene IRA, then take MRD's yearly based on your life expectancy. I'd hesitate to cash it out, unless you're in a financial bind. I'm no expert though, I would contact an accountant or call Fidelity, Schwab, etc....

https://www.fidelity.com/viewpoints/retirement/non-spouse-IRA

 

[USMarine2001]

I do have an account with Fidelity, thanks to GM and the Union. Gm pays $1 her hour I work and I dump %5 of pre tax per week, roughly $110 a week. However Been off work for a few months, while money is not tight, I expect to back to work april/may.

Why would I have to take a payment? and How would they know the difference?

 

[Fabner1]

I do have an account with Fidelity, thanks to GM and the Union. Gm pays $1 her hour I work and I dump %5 of pre tax per week, roughly $110 a week. However Been off work for a few months, while money is not tight, I expect to back to work april/may.

Why would I have to take a payment? and How would they know the difference?

That is how "inherited IRA's" work! How would the IRS know? Come on!:lol:
They will get you eventually! You have to claim the inheritance of the IRA when you get it changed to your name. Don't pay a CPA or Lawyer to do this for you!

Oldun

 

[Fabner1]

I do have an account with Fidelity, thanks to GM and the Union. Gm pays $1 her hour I work and I dump %5 of pre tax per week, roughly $110 a week. However Been off work for a few months, while money is not tight, I expect to back to work april/may.

Why would I have to take a payment? and How would they know the difference?

When you go back to work pay every penny you can into your GM 401k.
You will be glad you did when you are old like me!:yikes:

Oldun

 

[Petronius]

Marine,

Do not cash the IRA! If you are the beneficiary take the info to Fidelity in Novi and have them do the transfer into your name! You will have to take out a small amount every year but the rest will grow tax deferred for the rest of your life (if not a Roth). You will need a certified death certificate for the transfer, I believe. This is a blessing and thank your lucky stars for such a thoughtful Grandpa! Don't cash it out!

Oldun

The office in Flint would be much closer since he is in Lapeer.

https://www.fidelity.com/customer-service/branch-seminars

 

[Rasputin]

That is how "inherited IRA's" work! How would the IRS know? Come on!:lol:
They will get you eventually! You have to claim the inheritance of the IRA when you get it changed to your name. Don't pay a CPA or Lawyer to do this for you!

Oldun

Wow. As the saying goes, free advice is worth what you paid for it (in this case, maybe a little less)

The correct advice is to tell you to get professionsl advice, so find a competent estate tax atty or CPA and do it right. Avoiding the pitfalls will be well worth it.

 

[November Sunrise]

LOL - this thread is evidence that people will gladly give advice on things they know absolutely nothing about. Gotta love it.

 

[Fabner1]

Wow. As the saying goes, free advice is worth what you paid for it (in this case, maybe a little less)

The correct advice is to tell you to get professional advice, so find a competent estate tax atty or CPA and do it right. Avoiding the pitfalls will be well worth it.

I have advised others on this exact matter and it worked out just fine.

I sent a PM with particulars and he can do what he wants, just trying to save him the dough!

Some people pay a guy to invest their money for them too!

It seems quite apparent that some people don't know what they are talking about and show their ignorance by tying to put others down.

Old Fred

 

[Fabner1]

OK youse guys here is the deal.

If anyone of you find yourself in a similar situation as Marine do this:

Get a copy of the most recent Monthly/Quarterly IRA/401k statement and a certified copy of the death certificate. Drive yourself to a branch office of Fidelity or your favorite "NO LOAD" investment firm and have them transfer the inherited IRA into your name. They will handle all the paperwork and even take care of having the yearly Required Minimum Distribution taken out automatically in December every year. No Charge!
​

The reason I chose Fidelity is because I have accounts there and am comfortable with their expertise. He already has a 401k at Fidelity and they will set it up so when he logs in, both accounts will be on the same page and he can choose between them to view and do what ever he feels will be necessary. I currently have six accounts and a credit card all on one page that I can access. (Three of my own and three other family members accounts.) Pretty cool!:coolgleam

Marine is a young man and this account has the potential to grow over the next thirty odd years into a substantial amount for his retirement.

Remember your first wife and what a bee-outch she was? If she is named as a beneficiary on your 401k or IRA she will get the dough no matter what your will says or how many times you told family members you hated her guts and didn't want her to get anything!:rant: This is a good time of the year to check all your account beneficiaries and make sure they are up to date!

My dream is for an acquaintance to win the Mega-Million and ask me for advice to invest it!:yikes:

Old Fred

 

[Fabner1]

Marine,

Please post how this turns out so we can all see if I know what I'm talking about or will become a laughing stock!

Old Fred

 

[USMarine2001]

Thanks for all the info. Not sure what I will do as of yet, I have some time and will explore all options.

 

[Petronius]

Thanks for all the info. Not sure what I will do as of yet, I have some time and will explore all options.

Well, you could go over to the Fidelity office and have a talk with them to get their opinion.