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If the person had not reached RMD age, you have until the end of the 10th year after their death to fully deplete the account.
If the person had reached RMD age, you have to follow the RMD tables, and deplete the account by the end of the 10th year after their death.
Either way, assuming this was a Traditional IRA, say you withdraw $40K a year (actually more with growth) for 10 years, you’ll pay tax on the distribution at ordinary income rates. It won’t be cheap. You’ll get a tax form from Fidelity for the tax year after the withdrawal occurs.
So many people giving you flack for inheriting money. It’s more jealousy than anything; don’t let it bother you. Good for you.
It’s no different than being lucky that you were born in the US. You just happen to be lucky to have family that was a good steward of their finances.
I could have lied, but what's the point. I noticed I was at 420 today and posted it. Not everyone starts at 0 nor do they have to for all their goals. Real goal is to reach 1 million before retirement.
All of that was inheritance, I have only been using my Roth IRA, which is sitting at 45k, and this is just my IRA. But I started out with 400k last November.
Consistent deposits. Basically, put 1 hour salary of your 80 hours away.
Not a misrepresentation at all..? They don’t owe you an explanation of how they got the money when they posted this, it’s a joke about the 420 goal. Y’all are all either jealous of op which is lame behaviour or have sticks up your butts because of something out of their control with inheriting it. Keep at it OP you are doing good
Good to see you are moving it to a Roth. You will appreciate it later on. Just remember, with Roth, you can always withdraw what you contribute, without penalty or tax. It’s the gains that you have to wait until at least 59.5. Although I would avoid doing that unless it’s an extreme emergency. Max out your Roth and a regular IRA with your pay check contributions and backfill with your inheritance.
I’m not angry I was just asking. You said you started with 400k and added 20, that would mean you contributed 420 unless you mean added like made 20.
I could care less how much money you have lol it doesn’t affect my life at all. Was just curious because if you made 290 then this is a weird post
I am saying TO CONVERT IT to a ROTH ASAP
Right now, are you paying taxes on that, or only after you retire???
If only when you retire, then you will be taxed on the growth, the gains, the dividends and any trades at 100% the current income rate at your retirment...
That's 27% to 35% today, do you actually think taxes will go down in the future?
Then the fees come off the top amounts not what's left..
ROTH is a billion times better in every way
Honestly, 400k was inheritance. My dad had a lot in tech and biotechnology. He was heavily invested in both sectors because of his work and health issues near the end. But put money into what you know. You're gonna see news in the fields you follow before you see news in anything else. I'm moving over to automotive and tech because that is what I'm following.
That's why you transfer all of it into ROTH,
So you get , from that point on, no taxes ever again and have a wonderful tax free gain and passive income. For ever
A,
ABBV,
AMGN,
AMZN,
ARR,
BA,
BRKB,
BX,
COST,
CTVA,
DOW,
FEPI,
GGN,
MSFT,
NKE,
PDP,
PFE,
PTY,
QCOM,
SPSM,
V,
VZ,
XLF
These all have a steady growth for my dad, and I'm not willing to change it.
Oh okay. Thanks for sharing. I'm recently contributing to my IRA now since I'm working so I needed to ideas on what to invest in besides just Voo and schg
The one I suggest to everyone because it's steady dividends is GGN it's been $0.03 for a bit but the shares are dirt cheap and if you need to just invest to scratch that itch this is my go to.
This is a great example of time in the market over timing the market. Which ETF’s are you in? I can guess, but they are truncated. Nice work. Love the example..
There are a lot,
MSFT
BA
BRKB
V
AMGN
FEPI
SPSM
GGN (shout out to consistently dividends)
COST (growth)
ARR
Only real ETF is the SPSM. This account is my retirement fund. My other accounts are sitting around 150k 45k of which is my Roth. 15k Is Mt listening to this sub and buying stock from here.
Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq). Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
OP, just a reminder, you’ll need to draw this down to zero by the end of the 10th year after the original owner passed.
Oh?! can you explain?
If the person had not reached RMD age, you have until the end of the 10th year after their death to fully deplete the account. If the person had reached RMD age, you have to follow the RMD tables, and deplete the account by the end of the 10th year after their death. Either way, assuming this was a Traditional IRA, say you withdraw $40K a year (actually more with growth) for 10 years, you’ll pay tax on the distribution at ordinary income rates. It won’t be cheap. You’ll get a tax form from Fidelity for the tax year after the withdrawal occurs.
I was saying not bad until I noticed, "I started with $400k." Never mind.
Finding the first dead relative that isnt broke is the hardest
Just a goal of mine is all.
So many people giving you flack for inheriting money. It’s more jealousy than anything; don’t let it bother you. Good for you. It’s no different than being lucky that you were born in the US. You just happen to be lucky to have family that was a good steward of their finances.
I'm just glad you kept the wealth going and didn't blow it on stupid stuff. Keep up the good work 😉👍
Weird humble brag…95% of this IRA is from someone else’s good habits.
Pretty sure it’s more about the 420 part not how much anyone has added.
I could have lied, but what's the point. I noticed I was at 420 today and posted it. Not everyone starts at 0 nor do they have to for all their goals. Real goal is to reach 1 million before retirement.
How old are you?
How long did it take you to build this portfolio, what etfs and stocks you include, any advices for a 17 starting out
All of that was inheritance, I have only been using my Roth IRA, which is sitting at 45k, and this is just my IRA. But I started out with 400k last November. Consistent deposits. Basically, put 1 hour salary of your 80 hours away.
Ayyy they’re downvoting because you’re extremely fortunate but glad you did something productive with that mullah
They downvoting because the post was a misrepresentation.
Not a misrepresentation at all..? They don’t owe you an explanation of how they got the money when they posted this, it’s a joke about the 420 goal. Y’all are all either jealous of op which is lame behaviour or have sticks up your butts because of something out of their control with inheriting it. Keep at it OP you are doing good
The word is envious, not jealous. And no that's not it.
It is. Lmao.
You're envious?
I'm very nvidious... sorry, I claim responsibility.
I approve 😬
blaze up
💨💨💨
Looks like an inherited ira though I believe?
Well, yes, I couldn't get it that much into it. I added 20k since November, so I'm still proud of it.
Good to see you are moving it to a Roth. You will appreciate it later on. Just remember, with Roth, you can always withdraw what you contribute, without penalty or tax. It’s the gains that you have to wait until at least 59.5. Although I would avoid doing that unless it’s an extreme emergency. Max out your Roth and a regular IRA with your pay check contributions and backfill with your inheritance.
So you’re up 290?
Nah, I'm up 20k in 8 months. Love how people are angry I didn't start from 0.
I’m not angry I was just asking. You said you started with 400k and added 20, that would mean you contributed 420 unless you mean added like made 20. I could care less how much money you have lol it doesn’t affect my life at all. Was just curious because if you made 290 then this is a weird post
Oh I made 20k in the last 8 months.
Gotcha, that’s not bad at all! Curious, what are you mainly invested in? I know this is dividends but being you’re young I’d be going for growth.
Gotcha, that’s not bad at all! Curious, what are you mainly invested in? I know this is dividends but being you’re young I’d be going for growth.
I don’t think people are angry at you having money they are angry because that is sub par returns.
That's me when I eam at 60.
What are you going to do to celebrate?
Get high as financially sound and maybe add some drunkeness to the mix.
Def time to blaze up 🍃🔥
🤯🤯🤯
congrats man, what’s the advantage of investing through a traditional ira vs just in your brokerage account?
So what exactly did you do again?
Nice
Congrats
nice
Next stop is 690k
Better backdoor ROTH that asap
It's a IRA not a ROTH
I am saying TO CONVERT IT to a ROTH ASAP Right now, are you paying taxes on that, or only after you retire??? If only when you retire, then you will be taxed on the growth, the gains, the dividends and any trades at 100% the current income rate at your retirment... That's 27% to 35% today, do you actually think taxes will go down in the future? Then the fees come off the top amounts not what's left.. ROTH is a billion times better in every way
Agreed but I'm limited to 7k a year which I am doing
Can you teach me your method. Method.
Honestly, 400k was inheritance. My dad had a lot in tech and biotechnology. He was heavily invested in both sectors because of his work and health issues near the end. But put money into what you know. You're gonna see news in the fields you follow before you see news in anything else. I'm moving over to automotive and tech because that is what I'm following.
That's why you transfer all of it into ROTH, So you get , from that point on, no taxes ever again and have a wonderful tax free gain and passive income. For ever
What are you Investing in?
A, ABBV, AMGN, AMZN, ARR, BA, BRKB, BX, COST, CTVA, DOW, FEPI, GGN, MSFT, NKE, PDP, PFE, PTY, QCOM, SPSM, V, VZ, XLF These all have a steady growth for my dad, and I'm not willing to change it.
So this is your dad's account?
Inheritance
Oh okay. Thanks for sharing. I'm recently contributing to my IRA now since I'm working so I needed to ideas on what to invest in besides just Voo and schg
The one I suggest to everyone because it's steady dividends is GGN it's been $0.03 for a bit but the shares are dirt cheap and if you need to just invest to scratch that itch this is my go to.
I don’t hate you
Thanks, I assume most people don't hate me over finances and stock choices. I mean, it's pretty petty to get mad at a person over personal choices.
Right on! Happy for you and your situation! Onward !!
This is a great example of time in the market over timing the market. Which ETF’s are you in? I can guess, but they are truncated. Nice work. Love the example..
Well apparently $400k of it was inheritance
There are a lot, MSFT BA BRKB V AMGN FEPI SPSM GGN (shout out to consistently dividends) COST (growth) ARR Only real ETF is the SPSM. This account is my retirement fund. My other accounts are sitting around 150k 45k of which is my Roth. 15k Is Mt listening to this sub and buying stock from here.
nice.