Greetings Fools;this seemed like more of a 'tax strategy' question than an 'inheritance strategy' question.I am a beneficiary to a small, shared (traditional) IRA of a person who died after age 70 1/2 and was taking RMDs (MRDs - tomato - tomatoe). (that's 'Required Minimum Distribution' fyi). Shared as the primary was designated 50/50. I'm talking about $6k each here - I mean 'small'!Should I/we: A) maintain the IRA as an inherited IRA - continue taking RMDs and pay whatever taxes may come on all current and future investment earnings?B) take the lump sum distribution - pay the taxes now (well - on my 2012 tax form) then use the money to fund my roth IRA this year? (or just so it won't look so obvious - put this money in account 'X'; and fund my roth from account "y") IOW: pay Uncle Sam now and reap the rewards of no taxes on future investment earnings? I know this seems like a no-brainer as I write this (lump sum > roth) - just making sure I'm not missing something. We are both in our early 50's; I am self-employed - sister has an employer and standard 401k (I think) - probably doesn't really matter. Both in the effective 15% tax rate +-. Thanks to all in advanceKelly
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar<