The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Inherited TIRA Tracking||Date: 9/18/2012 6:59 PM|
|Author: BaumgrenzeJohn||Number: 116611 of 122998|
Is there an IRS requirement that a TIRA trustee must create an inherited TIRA for any named beneficiaries on the death of the original investor?
I ask because this now somewhat dated 2004 article suggests that cashing out the IRA might be an option.
“Cash out the account so it is no longer an IRA. "If you cash out the account, keep in mind that the funds are immediately considered taxable income for that year," Goetting says. She suggests talking with a tax pro before you make this decision, especially if a significant amount of money is involved.”
I can see where the IRS might want evidence that the MRD for the year of death had been taken even though they clearly get their pound of flesh and then some if the beneficiary converts the TIRA to cash and recognizes it as income.
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|