Early retirement has unique financial planning challenges, particularly regarding health insurance and tax strategies. For people who retire before age 65, the challenge of finding affordable and adequate health insurance adds another layer of complexity to their financial plans. 

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📰 See the full show notes here

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Outline of This Episode

• [04:32] Considering Roth conversion for potential tax benefits
• [09:07] Rules around qualifying for ACA in 2025
• [12:36] Early retirement may offer a low-tax window for Roth conversions, potentially reducing the lifetime tax burden
• [15:49] Consider long-term planning, not just immediate tax impacts, for decisions like Roth conversions
• [18:44] Roth conversions are typically completed at year's end to account for unexpected income changes affecting ACA MAGI estimates.

An inherited IRA is essentially an IRA received by a beneficiary after the original owner passes away. Whether it's a spouse, child, or another loved one, the key characteristic of an inherited IRA is that it transitions ownership upon death. 

As Grayson Blaszek explains, the funds are transferred intact, but the way you handle and withdraw these funds comes with specific rules and timelines. Grayson and Matthew dig into the new rules in this episode. 

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📬 Download your Free Retire On Purpose Guide here. 

📰 See the full show notes here

🌐 Sign up here to receive Retirement Weekly to get one email every week on all things retirement

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Outline of This Episode

• [4:50] Differences between eligible and non-eligible designated beneficiaries
• [6:16] Why it’s important to list IRA beneficiaries to avoid tax inefficiency
• [8:19] The year that you inherit an IRA impacts that distribution requirement
• [10:18] Discussing inheritance can lead to meaningful conversations that make financial planning easier
• [14:17] You need to continue taking the required minimum distribution (RMD) if the decedent began them already
• [16:00] How to handle a 10-year account withdrawal strategy
• [22:07] Key takeaways about your withdrawal options with the new rules as a non-eligible designated beneficiary