Financial Questions and Answers
What services do Infinity Financial Services clients receive?
Our clients receive proactive and personalized service for all of their financial planning, investment management, and insurance needs from one of our highly trained financial advisors. How we communicate with you, and the types of services we provide, are tailored to what you need and want—giving you the power to determine how much or how little interaction you have with us.
For more information about what Infinity can do for you, please contact us.
What is an inherited IRA?
An inherited, or beneficiary, IRA is a traditional, rollover, SEP, SIMPLE, or Roth IRA that is left to a beneficiary after the original owner’s death. When the beneficiary of an IRA takes possession of the money, the funds are transferred into an inherited IRA so that the assets remain tax-deferred.
Are there rules for taking distributions from my inherited IRA?
Yes. If you decide to open an inherited IRA, certain rules will determine when you must take your distributions. These rules are based on the type of IRA inherited, the age of the original accountholder at his or her death, and the type of inherited IRA opened.
Can I leave the assets in the original owner’s existing IRA account instead of opening an inherited IRA if I am a nonspouse beneficiary?
No. As a nonspouse beneficiary, you must open an inherited IRA and continue distributions from that account—or take a lump sum distribution.
Am I able to make additional contributions to an inherited IRA?
No. You are not allowed to make additional contributions to inherited IRAs.
For more information about inherited IRAs, please contact us.
Why should I roll over assets from a 401(k) retirement plan if I’m changing jobs or are retiring?
If you’re changing jobs or retiring, rolling over your 401(k) retirement assets to an Infinity rollover IRA is a great idea. A rollover IRA maintains tax-deferred growth and gives you more flexibility and control over your employer-sponsored retirement plan assets. It is nontaxable and gives you access to a wide range of investments. With an Infinity rollover IRA you can:
- Keep your retirement assets invested in a tax-deferred account.
- Avoid current taxes or penalties that may apply to a withdrawal.
- Gain access to expert retirement planning and investment guidance.
- Gain access to more investment options, including stocks, mutual funds, bonds, and CDs.
How can I avoid the 20% mandatory withholding income tax on my retirement payout?
To avoid the 20% mandatory withholding, request that your previous employer transfer all of your retirement plan payout directly into your rollover IRA account.
For more information about rollover IRAs, please contact us.
