Monmouth County's Ask The Doctor July/August 2018

What Should You Do With an Inherited IRA? Individual Retirement Accounts, or IRAs, are quite popular – which means you might inherit one someday. But what should you do with it? First, be aware that you will be required to take at least minimum distributions each year. Depending on what type of IRA you’ve inherited, these amounts may be taxable, so before you start accepting them, consult with your tax advisor. Of course, you could take out more than the required minimum and use the extra money to help with your other investment goals, but again, you’ll need to consider tax consequences. Also, you are free to change the investments within your inherited IRA to fit more closely with your risk tolerance, time horizon and long-term goals. Finally, you may want to consult with a financial professional to determine how your newly inherited IRA fits in to your overall financial strategy. For example, the added income from required distributions could change your retirement calculations. To respect your inheritance, you’ll want to get the most out of your IRA for as long as you can – so think carefully about what steps to take. This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, its employees and financial advisors cannot provide tax or legal advice. www.edwardjones.com Member SIPC F I N A N C I A L H E A LT H

Michael Leahy Sr Financial Advisor

100 Straube Center Blvd Suite 100 Pennington, NJ 08534 609-818-1682

Saving for Retirement Is Important for Your Financial Health If your employer has a 401(k) plan and you don't contrib- ute to it, you're walking away from one of the best deals out there. Ask your employer if they have a 401(k) plan (or simi- lar plan) and sign up today. If you're already contributing, try to increase your contribution. If your employer doesn't offer a retirement plan, consider an IRA.

One of the most popular bene- fits that employers offer is a 401(k) plan. This is a retirement plan that allows you to direct a portion of your paycheck into an investment account. The idea is that you save some money on taxes by making these pre-tax contributions while also choosing investments that will grow over time, so you can retire with a nice sum of mon- ey. There are a few benefits and drawbacks of the 401(k), so learn how you can best utilize yours if you have one available.

52

ASK THE DOCTOR

JULY/AUGUST 2018