SmartReads

A $250,000 inheritance can carry very different tax consequences depending on what you receive. Investments in a taxable account may qualify for a stepped-up cost basis, while distributions from an inherited traditional IRA are generally taxable as ordinary income. Taking too much from an inherited IRA in one year could leave you with a much… read more…

A living trust can cost much more than a simple will, which can make the initial expense difficult to justify for some people. However, that additional cost provides benefits that a will alone cannot, including avoiding probate in many circumstances and streamlining the transfer of assets to your beneficiaries. Furthermore, this upfront investment can cover… read more…

Inheriting a house does not mean that you automatically owe capital gains tax. In most cases, the home’s value at the owner’s death becomes the starting point for calculating your gain, which can reduce or eliminate tax on appreciation that occurred during the owner’s lifetime. Taxes may still apply if the property increases in value… read more…

At 59, $1.6 million may be enough to retire, but leaving work also means giving up health insurance coverage from your employer. Medicare generally doesn’t become available until age 65. Paying marketplace premiums during that six-year gap could increase your withdrawal rate, and that may undercut the longevity of your nest egg. How Health Insurance… read more…