Josh Dolinsky, New York, New Jersey discussed on The Financial Quarterback


To be paid one through nine, and the remaining funds be paid out in your 10. Many commentators believe the iris it's simply made a mistake. And that's how it turned out to be the case. In a subsequent revision dated May 13th The service made clear that annual rmds aren't required under the 10 year rule. After all. So the 10 year rule is like the old five. You can take out all your money in your 12345. Well, what could be really cool as you wait till the 10th year you get nine years of tax regrowth. But let's say one year you lose your job or one year you don't have as much money. That would be a great year to take the distribution from a loved one. Because it's not tax free. So the I. R s may have cleared up that mess. But they may have created a new one. The IRS has said that the five year payout Ends on December 31st. Of the year. Following the fifth anniversary of death, most assume that the 10 year period would be applied the same way. Indeed, one of the most recent publications confirms that that's publication 5 90 B. You could go to IRS dot gov and check it out. But two paragraphs later, the Iris says that the ending date of the 10 year period is different when the beneficiary risk receiving stretch payment stars or when a minor child receiving stretch payments. Reaches the age of majority. That's really do, too. There are some rules. If you're a minor, minor child and you inherit it, and they'll probably release further clarification on that. That's confusing, and they usually do. So Also there is a beneficiary planning loophole. That has closed with the passage of the Secure act. Once common IRA beneficiary planning strategies have been upended. For example, no longer can just anyone stretch payments of an inherited IRA. You must qualify as an e, d b or necks. Eligible Designated beneficiary to stretch using your single life expectancy. PDBs includes surviving spouses. Minor Children, and this is where I think once they reach age of majority, they won't have that benefit, disabled and chronically ill individuals and individuals not more than 10 years younger So you get to still stretch the IRA. All other living breathing. Irate beneficiaries will now use the 10 year rule. There are no annual rmds during the 10 year window, but the account must be emptied by the 10th year after death. So if you have questions on this arm, the role we're going to talk more about a break it down. But first we're gonna go to Ursula. Who's calling us at 803 2107 10. Ursula, you're on with Josh Dolinsky, the financial quarterback. Thank you for taking my call. I just have a question of my husband and I bought an apartment of condominium in Southampton. About 48 years ago, and we bought it for $76,000 at the time. They are now selling between one million and 1 to 1,000,003. And my question is this, um My friend who also owns this, uh, same apartment wants to sell it below one million because she keeps telling me that that is a million nest tax. Can use answer that question. Is that federally or state? Is she referring to Uh, well, state I live in New Jersey. The property is in New York. So, um Well, there is a mansion tax. The millionaires tax in New Jersey does apply. But what could you get the value for too many people make Avoiding taxes. The goal when it should be to get the most. You, can I? Yeah, I mean, I know I could roll it over in another property or you know, but I 84 years old. I don't want to do that. So I will have to pay the capital gains. Whatever they are. I was told by my accountant to be as aggressive as I can be with ride off, But of course I have to prove them. And I just then heard this, you know, tell her telling me sell it under a million. So you don't have to pay a millionaire stocks. But what is your What is the property worth? If you sold it today is that were in 1.2 millionaires at like one point of Three or, you know, it's at one point Oh, five. They're selling between 1.1 and 1.2 million. Okay, so I would just sell it for what it's worth. And okay, I mean, I forget exactly what the I gotta look to something. You know there is a New Jersey mansion tax. I don't know if it applies. We have a lot of accountants who listen to the show. I'm not sure if it applies to Properties you sell outside of the state of New Jersey. Um, and there is some type of mansion tax. I'm aware of what you're talking about. But, you know, let's say it's 10% will 10% of 200 grand is 20 grand. So why would you take a 200 I don't know. $1000 pay cut on on on the sale. The other thing you could do is 10 31 Exchange it. Or you could keep the property. And after you pass It will be inherited with a step up in basis unless the Biden administration changes that I see. Yeah. So I would also get.

Coming up next