The Listener Question I’ve Never Been Asked, Ep #109

<p>In this special listener question edition of the Retirement Made Easy podcast, I’ll cover three amazing listener questions plus a bonus question that I’ve <em>never</em> been asked before: Should you sue your financial advisor? Tough question! Listen to this episode to hear my answers!</p> <p>Remember, you can submit your questions at <a href= "https://retirementmadeeasypodcast.com/contact/" target="_blank" rel="noopener">RetirementMadeEasyPodcast.com</a>!</p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[2:54] Ask me a question at RetirementMadeEasyPodcast.com!</li> <li>[4:18] Question #1: Can you stop or suspend social security? </li> <li>[7:28] Question #2: How do tax payments work with an inherited IRA?</li> <li>[11:57] Question #3: Pay off your house or increase 401k contributions?</li> <li>[16:31] Question #4: Should you ever sue your financial advisor? </li> </ul> <h2>How do tax payments work with an inherited IRA?</h2> <p>Sue recently inherited her dad’s IRA and stocks. What are taxes going to be like this year? Will she have to make mandatory withdrawals from the IRA? Sue plans on working five more years and doesn’t want to get killed with taxes. </p> <p>The rules for inherited IRAs changed after January 1st of 2020. Once you inherit an IRA, the rules say that you have 10 years to empty the inherited IRA. At the end of the 10 years, the money has to be completely removed and taxes must be paid. However, there is NO mandatory annual distribution. </p> <p>If you have a 401k through an employer and you’re contributing $10,000, you could still contribute $17,000 to the 401k. You could take a distribution from the IRA and increase your 401k contribution by the same amount. The tax situation would be a wash.</p> <p>What do I recommend? What should Sue do with the inherited stocks? Listen to learn more. </p> <h2>Pay off your house OR increase 401k contributions?</h2> <p>Should you increase the money you put in your 401k or put more toward your mortgage? This particular cou