The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/pixy-posted-quotwhether-she-moves-her-hubbys-13011526.aspx

Subject:  Re: withdrawing from IRA after spouse's death Date:  7/27/2000  9:09 AM
Author:  BGPenhollo Number:  23708 of 75790

Pixy posted..

"Whether she moves her hubby's IRA to her own IRA or not, because she is past age 70 1/2 minimum mandatory withdrawals must continue or she will pay a 50% penalty on money she should have taken but did not. If the living trust was not the beneficiary of the deceased's IRA, then the only way she can get the money into that vehicle is to cash it in (thus incurring the income taxes due on that event). She may then put whatever is left after taxes into the trust. Is there an advantage to her in doing that? Only she and her tax advisor can answer that. And as to the estate tax, if the husband's estate (which includes the IRA) is large enought to incur one ($675K this year), then the estate tax must be paid. There is no way to avoid that"

Did I catch you in a lapse of thought??

No estate tax is paid on the amount he left to his wife. The $675,000 is an exclusion on the amount the estate passes on to others. Or I am mistaken?

BGP
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us