Inherited an IRA? Now What?
Jeffrey Levine of Buckingham Wealth Partners, aka “The Buckinghammer” explains what beneficiaries who inherit an IRA must know and do.
Key Takeaways
- Review your inherited IRA contract terms carefully—the payout structure may be locked in by the insurance company's contractual obligations, but some contracts do offer flexibility in distribution options
- Contact your insurance company directly and ask specifically about changing from monthly payments to a lump sum; if initially told no, escalate to their advanced planning team as frontline representatives may not know all available options
- Consider a factoring company (like those advertising during TV) that can convert your income stream to a lump sum, but expect to receive significantly less than the total value of remaining payments since they profit from the transaction
- Develop a comprehensive financial plan regardless of whether you take monthly or lump sum distributions—proper planning is essential at any income level to avoid the common problem of unexpected financial windfalls leading to bankruptcy
Jeffrey Levine of Buckingham Wealth Partners, aka “The Buckinghammer” explains what beneficiaries who inherit an IRA must know and do.
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