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If you’re enrolled in Medicare and have just inherited an IRA, a large withdrawal could raise your premiums. Taking too much money may increase what you pay two years later. Inherited traditional IRA distributions are generally taxable, so the amount you withdraw can affect both your current tax bill and future Medicare costs. Next Steps: Estate planning can be overwhelming. We recommend speaking with a financial advisor. This free tool will match you with vetted advisors who serve your area.

Annuities can look tax-friendly because your money grows without an annual tax bill, but the real surprise often comes when you start taking money out. Depending on how the annuity was funded, withdrawals can trigger ordinary income taxes, early-withdrawal penalties and surrender charges. Combined, these costs can significantly reduce what you keep. It’s important to understand how annuities are taxed before investing to avoid an unexpected tax bill later.

Inheriting $100,000 can create new financial opportunities, but deciding what to do with the money may depend on what you actually inherited. Cash, taxable investments and retirement accounts can each come with different tax rules and planning considerations. Before you spend, withdraw or invest the money, it can help to understand the structure of your inheritance and what tax consequences or deadlines may apply.

Your inheritance may lose value before you invest it. Taxes on inherited assets could reduce how much you get to keep, while careful planning may preserve more of it. The type of asset you receive and the decisions you make afterward can affect how much is available for long-term growth. Here’s how a $150,000 inheritance could grow to almost four times its original value. Next Steps: Estate planning can be overwhelming. We recommend speaking with a financial advisor.

Financial advisor marketing has traditionally centered on investing, performance and wealth accumulation, but that approach may not always align with what women are looking for from financial advice. Women are already primary decision-makers on investment choices in 69% of households surveyed by CFP Board, and their financial influence is expected to grow as wealth changes hands through the Great Wealth Transfer. Are you looking to expand the marketing of your financial advisor practice?

A successor beneficiary is someone who inherits an individual retirement account (IRA) from a prior beneficiary rather than directly from the original owner. That second-generation inheritance can affect distribution deadlines, annual required minimum distributions (RMDs) and tax-planning considerations. Because of these implications, it’s especially important to understand the original beneficiary’s status.

You inherited an IRA from a beneficiary, not the original owner. That distinction matters because you generally assume the existing distribution schedule and don’t start a new timeline. As a result, your options may be more limited than what is available for direct beneficiaries. Overlooking these requirements could accelerate withdrawals, and, if you ignore the rules, cost you more in taxes and penalties.

Is it smarter to take Social Security at age 62 or withdraw from your 401(k)? I’m going to need some monthly income on top of my pension. – Robert Deciding when to begin collecting Social Security is one of the biggest financial decisions you’ll make in your life. Unfortunately, the Social Security claiming decision is quite complex and involves a lot of different variables. Delaying Social Security can increase your monthly benefit, which may make waiting attractive for some retirees.

A $300,000 inheritance can give you enough money to invest for the future, but taxes may reduce how much you get to keep. Cost basis rules for inherited investments and withdrawal requirements for inherited IRAs could affect the amount you have available to invest. Over 30 years, even a small tax cost upfront might make a much larger difference in the future value of an inheritance. Next Steps: Estate planning can be overwhelming. We recommend speaking with a financial advisor.

With Labor Day weekend approaching, millions of Americans are preparing for one last major road trip of the summer. Gas prices have eased from their annual highs, but drivers are not feeling the savings equally. Prices at the pump vary considerably from state to state, as does the share of household income required to fill a tank.