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Financial Planning / Tax Strategies
|Subject: Re: Inherited IRA Q||Date: 3/26/2013 11:25 PM|
|Author: TMFPMarti||Number: 118173 of 121219|
would that make it taxed as ordinary income
instead of 'estate' taxed?
I'm not sure what the question is. The values of IRAs are included in the gross estate calculation and, depending on the total value of the estate, may increase the amount of estate tax due from the estate. IRA distributions result in ordinary income to the recipient. If that recipient is the estate the estate may pay the income tax or may pass the taxable income through to the beneficiaries of the estate.
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