Taxes

​​​​​​​I know it’s a busy time. But it’s not too soon to start thinking about taxes.

There’s no doubt that it feels great to help someone in need through charitable giving. Here are some important things to consider when thinking about donating a significant gift to an organization, whether monetary or otherwise. 

Prior to 2020, when a non-spouse beneficiary inherited a traditional retirement account, that beneficiary was eligible for a planning strategy known as a stretch IRA. A stretch IRA extends the tax-deferred status of an inherited IRA when it is passed to a non-spouse beneficiary. The benefit of this planning technique is that the non-spouse beneficiary would not have to recognize the entire inheritance as taxable income in the year they inherit the money.

We’ve all heard the stories. If not first hand, at least in various news reports and anecdotes.

Some “lucky” person picks the winning numbers, prances before the cameras in what can only be described as a media lovefest, and lives happily ever after, free of financial worries.