Retirement Planning Education, with Andy Panko #167 - Q&A edition...basis in inherited IRAs, Social Security break even analysis, coordinating RMDs and Roth conversions and MORE!
Aug 28, 2025
In this engaging Q&A session, listeners dive into the complexities of inherited IRAs and the tax implications involved. Discover the ins and outs of Required Minimum Distributions and whether they're truly problematic. A break-even analysis for Social Security is examined, along with guidance on when to consider a financial advisor. Confusion over Roth contribution rules across different retirement plans is cleared up, and unique scenarios like handling RSUs and Health Savings Account distributions are discussed. Tune in for practical insights and lively banter!
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Cruise Detour And Chef Dance
- Andy describes a cruise detour to Halifax and a chef dancing that delighted his kids.
- Seeing his children enjoy the chef's performance gave him a big goofy smile moment.
How To Report Basis In Inherited IRAs
- When inheriting an IRA with basis, first prepare the decedent's final Form 8606 using the date-of-death IRA value.
- Then split remaining basis between beneficiaries and track inherited IRA basis separately on each beneficiary's 8606 going forward.
RMDs Are Like High Earned Income
- Large RMDs are functionally similar to large earned income: both mean you've accumulated wealth and will owe taxes.
- Paying more tax because you have more assets isn't inherently bad, but it is a planning problem worth managing.