Non-Retirement Account Change of Ownership Form 2025

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If youve saved most of your money in a tax-deferred retirement account such as a 401k, you will have to pay taxes on your withdrawals at your regular income-tax rate. So, if you need, say, $50,000 a year to cover expenses, youll have to withdraw even more than that to cover taxes.
While bank accounts and many other financial accounts can be jointly owned, retirement accounts like IRAs and 401(k)s are inherently individual. That means each person must open and maintain their own retirement account. The IRS does not permit sharing these accounts between spouses or any other individuals.
There are many kinds of IRAs including SIMPLE and SEP, both of which are IRA options designed with small business owners and their employees in mind. However, the most common IRAs for individuals are Traditional and Roth.
Traditional retirement accounts defer paying taxes until you withdraw the money from the account during retirement. Non-retirement accounts, such as taxable brokerage accounts, do not have any unique tax benefits and are taxed depending on the type of transaction within the account.
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