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Lizzie inherits an IRA from her dad in 2024. Her dad was 78 years old. Since her dad was over his Required Minimum Distribution (RMD) age, Lizzie is required to take her first RMD in 2025 and do so under the 10-year rule and then empty the account by the 10th year from the date of death (if money is left) Billy inherits an IRA from his aunt who died in 2022 at the age of 66. Since his aunt wasn’t at their RMD age, Billy is not required to take an RMD each year however, the account must be emptied by the 10th year after she died. Mary inherits a Roth IRA from her mom in 2024. Since Roth IRA’s do not have a required minimum distribution (RMD), Mary does not have to withdraw anything until the 10th year after her mom died. Mary can let this account grow over this time period and when money is withdrawn (whether during the 10-year period or all at once in year 10) the money is all tax free to Mary. Joanne’s husband died in 2024 and left his IRA to Joanne. Under the Spouse Rule, Joanne is not required to withdraw money from her husband’s IRA until she reaches her required minimum distribution (RMD) date. Since she was born in 1961, her first RMD must begin in the year she turns 75.

Baby boomers have amassed more wealth than any other generation. Most are well into retirement (in their 70s and 80s) and many are leaving significant sums to their adult children or heirs. According to the Financial Post, baby boomers who plan to leave all of their assets to their millennial children expect to leave an average of $940,000.1 That’s more than many millennials are expecting. With so much money on the way, should you plan on it?

Over your lifetime, there have been many changes to retirement plan rules, Social Security benefits, and other financial matters relating to your age. It can be challenging to keep track of what you need to do - and when you need to do it. Below is a guide to Milestones by Age to keep you and your family members on track about financial decisions and important life milestones.

In fact, the assets in Mortimer’s Roth IRA used to live in his Traditional IRA. Years ago, he worked with his Certified Financial Planner™ practitioner to determine the optimal amount to convert to a Roth IRA. By doing so, he removed a fair sum from his IRA which was subject to required minimum distributions (taxed as ordinary income) and moved these assets to a Roth IRA that has no required minimum distributions and money coming out, is not subject to any taxes.

As humans we are hardwired to seek safety, security and certainty. Back in the ‘hunter-gatherer days’ our survival depended on fending off lethal predators and finding enough food to survive. Recognizing the benefits and efficiencies of a collective, humans began to organize themselves into tribes which were more formidable to predators than single individuals trying to sustain themselves. This led to systems: males typically hunted for food while females managed the home and childrearing. Stability to these systems helped them have a better chance of avoiding starvation or death, which were real threats.

I continue to be surprised by how many new clients have been contributing far less than the annual maximum amounts. Sometimes this is due to limited cash flow or financial capacity to contribute. But more often this is due to a lack of understanding about the employer plan rules. Some have not been contributing at all - even if the employer offers matching contributions. In this case, they are leaving free money on the table. Most plans offer an employer match, anywhere from 1% to 5% or more. But in many cases, employees contribute only the percentage of salary that is matched by the employer, not recognizing their potential to save much more. Employer matching contributions usually have a vesting schedule, so know your employer’s vesting schedule, especially if you plan to change jobs before your funds are 100% vested.