The New IRS 10-year RMD Rule Isn’t What We Thought It Was, Ep #242

If you have received an inherited IRA or think you will in the future you won’t want to miss this episode. In the retirement headlines segment, we’ll take a look at the proposed changes in regulations regarding inherited RMDs based on the Secure Act of 2020.

In the listener questions segment, we’ll hear from Jim who has a question about rebalancing retirement income buckets. Make sure to stick around until the end so that you understand the best way to manage your buckets in retirement. 

Outline of This Episode

• [1:32] The IRS interpretation isn’t what we thought it would be
• [7:36] An example to illustrate an inheritance scenario 
• [10:45] What can we learn from this new rule?
• [14:25] Should you have 5 years of income or 25% of your portfolio value in bucket #1?
• [17:18] Should you rebalance when stocks and bonds are down?
• [18:56] Do Vanguard total bond funds qualify for bucket #1 or #2?
• [22:03] Should you maintain a small list of funds in a portfolio?

Resources & People Mentioned

• Episode 239 - Part-Time Retirement Programs Are on the Rise
• Investment News article by Ed Slott

Connect with Benjamin Brandt

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