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Ask the Hammer: I've Inherited an IRA... Now What?

Jeffrey "The Buckinghammer" Levine of Buckingham Wealth Partners answers a Retirement Daily reader's question about an inherited IRA and taxes.

In this episode of Ask the Hammer, the Retirement Daily reader's question is:

I inherited an IRA from a deceased relative at 59 and a half years old. I really wanted a lump-sum to open an IRA, but I was told that, since I'm receiving a life payout, I can't change it. I'm paying taxes yearly at my current tax rate. Is there anything I can do to switch the account with a monthly payment to a one-time payment to avoid future taxes?

Jeffrey "The Buckinghammer" Levine says that this really depends on the particular contract. There may be a way to get a lump-sum payment, but there may not; Again, it really depends on the contract.

Levine suggests that the question-asker should send an email or make a phone call to double-check what the contract is. A financial advisor is a great person to contact in this situation to help sort things out.

Regardless of what the contract is, this question raises the importance of a financial plan. It is important for everyone, regardless of wealth, to know what they're going to do with their money. 

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