Jennifer knew she would be able to have a comfortable retirement when she retired, thanks to a pension, social security, and a retirement account. However, when her father passed, she suddenly had assets she had not factored into her equation.

After some Googling, she realized there were rules to follow with the IRA, and was worried she might owe tax on her father’s taxable investment account.

Upon meeting with us, we quickly assured her she had nothing to worry about with taxes on the taxable account. However, there were rules to follow for the inherited IRA, and she would face significant taxes and penalties if not done correctly.

We were able to help Jennifer calculate what the minimum amount she needed to withdraw from her inherited IRA to stay above board. However, withdrawing the required minimum was not optimal for her plan, as she would face a massive tax bill at year 10, thanks to the new tax rules.

We helped Jennifer realize how much she should actually withdraw in order to reduce her lifetime tax bill, allowing her to enjoy more travel with her family and grandchildren.

Outcome: Jennifer, and Jennifer’s children will pay hundreds of thousands less in taxes because of our planning. Her retirement is in terrific shape, and she can spend more now, and give to her children.