In this episode of Adam Talks, IRA Financial’s Adam Bergman Esq. discusses the hit series, Succession, and an unexpected inheritance of an IRA.
What IRA Investors can Learn from Logan Roy
In this week’s Adam Talks, Adam Bergman discusses the importance of estate planning and updating beneficiary forms for retirement accounts. He emphasize the need for consistency between the beneficiary form and the will, as the former can trump the latter in case of conflicts. Bergman stresses the importance of keeping these documents in a secure place with a set of instructions for what to do on death. He also highlights the importance of transparency and communication with family members, especially if they are beneficiaries. It’s also crucial to update the beneficiary form in case of changes in family situations, such as divorce or separation.
Bergman explains the requirements and distribution rules for retirement accounts, which are tax-free transfers to the primary beneficiary. He notes that primary beneficiaries can receive assets tax-free and can roll over an inherited 401(k) into an IRA. He also discuss the new RMD rules proposing a ten-year rule for both pretax and Roth accounts, but it has yet to be implemented. Bergman suggests keeping beneficiary forms up to date and communicating with accountants, attorneys, and executors to ensure beneficiaries understand the plan.
Bergman goes on to provide examples of families who only found out about accounts after the death of the account holder, causing unnecessary confusion and delay. He advises making detailed instructions for beneficiaries in case of a change in marital status or death in the family. He also tells listeners to communicate with their beneficiaries to ensure their wishes are followed. Keeping beneficiary forms up to date is essential, and Bergman suggests keeping them with a will.
Bergman also discusses the television show Succession, and suggests that viewers watch it. The show highlights the importance of planning for the unexpected, and Bergman stresses the importance of planning and communication, especially as a person gets older. He notes that even if someone is not a billionaire like Logan Roy, they still need to plan for their retirement accounts to go to the right person in a timely fashion. Preparing for death is an important exercise, and having a plan and communicating it with trusted parties can make things easier for everyone involved.
Overall, Mr. Bergman provides helpful information for those interested in estate planning and retirement accounts. He stresses the importance of keeping beneficiary forms up to date, communicating with beneficiaries, and making detailed instructions. Bergman provides helpful tips for handling changes in life circumstances and emphasize the importance of planning for the unexpected. The requirements and distribution rules for retirement accounts are tax-free transfers to the primary beneficiary, and primary beneficiaries can receive assets tax-free and can also rollover an inherited 401(k) into an IRA.
Planning for death is an important exercise, and having a plan and communicating it with trusted parties can make things easier for everyone involved. To learn more, listen to the podcast!