Page 6 - Jupiter Ocean Mile - January '24

Page 6, Jupiter Ocean Mile
Financial Focus ®

Don’t Leave Your IRA To inherited an IRA after 2019, meaning that beneficiaries of the life insurance could then provide tax-free benefits to
your heirs.
inherited IRAs had only 10 years (beginning the year after
The IRS death) to withdraw the entire balance. For some beneficiaries, • Leaving taxable investment accounts to your heirs. Apart
this could potentially create a tax burden. (Inheritors of Roth from your tax-deferred IRA, you may own other, fully taxable
By Sally Sima Stahl IRAs are also required to follow the 10-year distribution rule accounts containing investments such as stocks or bonds.
If you’ve invested in an but are not subject to income taxes on account earnings if the Typically, these investments receive what’s known as a “step-
IRA for many decades, it may Roth IRA’s five-year holding period has been met.) up” in their cost basis once they are inherited. This means your
well turn into a key source of However, not all beneficiaries were affected by the new heirs will essentially inherit all the gains your investments
income for your retirement. rules. Spouses can stretch their inherited IRA distributions earned by the time of your passing – but they won’t be taxed
Still, you might not deplete over their lifetimes and exceptions exist for certain non-spouse on these gains if they sell the assets immediately. This type
your IRA in your lifetime, beneficiaries. Minor children of the IRA owner (until the of sale could help offset the taxes your heirs will incur from
especially if you also have age of majority), chronically ill or disabled individuals, and the inherited IRA.
a pension or a 401(k) and beneficiaries who are no more than 10 years younger than the The tax and investment issues surrounding inherited IRAs
other investment income. So, IRA owner may opt to stretch their distributions. can be complex, so consult with your tax and financial advisors
if your IRA still has sizable The new 10-year requirement applies to IRAs inherited before making any moves. And, as with many areas relating
assets after your passing, it on or after Jan. 1, 2020. But due to confusion over changes to inheritances, the sooner you start planning, the better.
would likely end up in your estate plan. If you leave your IRA to required minimum distribution (RMD) rules for some This article was written by Edward Jones for use by
to grown children or other family members, could they be hit beneficiaries of inherited IRAs, the IRS waived penalties for your local Edward Jones Financial Advisor, Edward
with a big tax bill? individuals who failed to take RMDs in 2021 and 2022 and Jones, Member SIPC.
Here’s a little background: Up until the Secure Act of extended the RMD penalty waiver for 2023. Edward Jones is a licensed insurance producer in all states
2019, those who inherited traditional IRAs could extend their Although these rulings give beneficiaries – those not eligible and Washington, D.C., through Edward D. Jones & Co., L.P.,
required withdrawals over their lifetimes, which stretched out for the exemptions listed above – more time to plan, they will and in California, New Mexico and Massachusetts through
the annual taxes due on these withdrawals. But the Secure eventually need to start taking RMDs, which could affect their tax Edward Jones Insurance Agency of California, L.L.C.; Edward
Act changed the provisions for non-spouse beneficiaries who situations. To help protect your heirs, consider these suggestions. Jones Insurance Agency of New Mexico, L.L.C.; and Edward
Jones Insurance Agency of Massachusetts, L.L.C.
• Using permanent life insurance. A properly structured
Northern Notes permanent life insurance policy could help you replace the Edward Jones, its employees and financial advisors cannot
assets your family might lose to the taxes resulting from an
provide tax advice. You should consult your qualified tax
inherited IRA. You might even consider naming a charity as advisor regarding your situation.
Feral Hogs – A Growing Problem the beneficiary of an IRA, rather than your family members. Contact us at (561) 748-7600, Sally Sima Stahl, AAMS,
The charity would receive the IRA proceeds tax free, and 1851 W. Indiantown Road, Ste. 106, Jupiter, FL 33458.
By Katie Roundtree,
Director of Finance and “Service is our number one priority”
Administration Northern
Palm Beach County 561-743-0070
Improvement District
Feral hogs have been www.palmspoolservices.com
in Florida since the 1500s,
when they were initially
brought to North America
by European explorers
and settlers who sailed
here looking for gold and
a western passage to China. They were brought with the
settlers on ships as a food source in the New World. Over the
years, some domesticated hogs got loose and became wild/
feral. Additionally, Russian boars were introduced to the
United States in the 1900s for sport hunting. Interbreeding
between escaped domestic pigs and boars has created hybrids
with the most robust characteristics of each. Wild hogs are
found in all 67 Florida counties and at least 35 states today.
Over 500,000 are estimated in Florida, with approximately Expires 2/15/24.
6 million nationwide.
The wild hog population continues to expand as they State Licensed & Insured
become used to different climates. They are found in various Serving Palm Beach County CPC # 1457468 • LPG#30099
habitats but prefer oak-cabbage palm hammocks, freshwater
marshes and sloughs, pine flatwoods, and open agricultural
areas. In addition, they have few natural predators. Bobcats,
coyotes and panthers can prey on smaller hogs, but man is
the most significant predator of wild hogs.
They are a destructive, invasive species, called by many
names, including wild hogs, wild boars, feral swine, or
razorbacks. Wild hogs grow to about 3 to 5 feet long and weigh
75 to 250 pounds, but some can be twice as large. Living in
groups called sounders, they damage crops, commercial and
personal property and environmentally sensitive land. They have

Northern Notes on page 7
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