Ask Terry Questions Deceased wife’s retirement saving plan

Deceased wife’s retirement saving plan

By Terry Savage on December 04, 2023 | Financial Planning / Retirement

My wife passed and I am the beneficiary of her retirement savings plan. Asset allocation, 41.9 % retirement funds, 31.8 % stocks, 26.3 % money market/stable value. Total value close to $93,000 . At my age I will have to withdraw 7% this year. I’m thinking about a total withdrawal and putting the money in a high yield savings account. Your advice, please. Thanks for your assistance in advance.

Terry Says

Well, that doesn’t make ANY sense at all! You’ll just generate a big tax bill. The added income will increase your Medicare Part B premium. And you’ll lose all future tax-deferred growth of the account!

Has your custodian explained all your options? You don’t say whether your wife had started taking RMDs (in which case you must continue) Or whether you are age 73.
But since you mentioned taking RMDs, I suggest doing so on an annual basis. Make sure the custodian withholds taxes.
If you’re uncomfortable with the investment mix at this stage of life, move more into the money market fund alternative.

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