Monthly Insights Newsletter: November 2022

Pat’s Planning Post

New Guidance on Inherited IRAs

Did you inherit an IRA from a loved one after 12/31/2019? If so, the IRS has some good news for you. After confusing many taxpayers with ambiguous guidance, the tax authority has issued guidance for 2022. In short, certain account owners of inherited IRAs after 12/19/2019 do NOT need to take the required minimum distributions in 2021 & 2022. There will be no penalties assessed for not taking a distribution.

The IRS plans to make a firm decision in 2023 regarding future distributions, but for now, this is what taxpayers have to go off of.

Read more about the guidance in this article from the WSJ.

Liebmans’ Library

In this section, which we call Liebman’s Library, Matt Liebman and Sam Liebman will
share 1-2 articles or charts per month that caught their attention related to the Investment Markets. When Matt was in Elementary school, he would walk into his room and find newspaper or magazine articles about sports, politics, business, or markets that Sam had cut out for Matt to read. The tradition has continued for over 30 years.

The term that we have been using to describe the markets since earlier this year is
“Volatile Mediocrity.” Our general view is that – after a decade-plus of mostly uninterrupted strong markets and a nasty multi-asset bear market in early 2022 – we are in a period of mixed outlooks and results. Effectively one strong short-term period is followed by a weak one and vice versa, and the net result does not amount to much of a directional move. As with all market cycles, this one will also end one day. For this edition, we chose two articles that combine to reflect this murky outlook:

The combination of these two commentaries can be seen played out on an ongoing basis in the current volatile markets. We are reading these two perspectives and many others as we consider current and future portfolio positioning.