Who here knows about ‘inherited IRA’s?

[rockyfatcat]

I just need to ask a few questions. My Aunt died and I am the beneficiary of her IRA

 

[Wheeler]

I inherited one, I don’t know that I can answer your questions but am willing to try.

 

[TheGman]

I would suggest consulting a good CPA , not very expensive and it can be beneficial.

 

[rtross]

I would suggest consulting a good CPA , not very expensive and it can be beneficial.

This

But the real advantage to passing on IRAs to heirs is the tax break.
The donor does not pay tax on it, and therefore, avoids taxes. But the receiving party also inherits the tax burden (when they distribute the proceeds).

 

[notcreative]

I don't remember everything.

First, there may be an exception in 2020 due to the covid pandemic.
With that caveat, if your aunt did not take her RMD for the current year, then you must take the RMD by December 31st.

Whatever financial institution will be holding your new account, it is vital that you name it properly. It is something like _____, inherited IRA from _______". That is not it, but it is not like your regular IRA.
The institution should know how to set it up.

Good luck!

 

[Jdadams]

If you take the cash you pay the tax.

That was my experience anyway from last year.

 

[NDIrish1]

I had to consult an estate attorney.........

 

[ole ed]

I had to consult an estate attorney.........

What area are you in. I know a great CPA in Kennesaw.

 

[rockyfatcat]

Apparently the new laws require the funds be disbursed within 10 years. Everything is taxable as current income. Unfortunately I have been gearing up to fight the IRS and their unlawful taxing of this citizens income.

 

[NDIrish1]

What area are you in. I know a great CPA in Kennesaw.

Carrollton...... but it’s been almost 2 yrs ago....... Retirement accounts was just a part of the trust we had to probate, etc. thanks though