The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Inherited IRA Q Date:  3/26/2013  11:25 PM
Author:  TMFPMarti Number:  118173 of 127753

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.

Rule Your Retirement Home Fool
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us