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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121144  
Subject: Re: Tax issues re: inherited Ira Date: 4/9/2010 11:29 AM
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shaggydown: "I recently inherited a Ira from my deceased parent. I have successfully transferred and titled the account into my trading acct. This account is tax deferred, and I will have to take withdrawls starting 2011, based on life expectency, etc. Since transferred I've sold out of mutual funds and have purchased in and out of stocks. Are there any tax reporting implications that I'll have due to moving out of mutuals?"

My condolences on your loss.


irasmilo: "No implications at all. What happens inside this IRA is treated the same as what happens inside any IRA."

I do not necessarily disagree, but I would like to question more about
"titled the account into my trading acct." --- if you transferred the funds into an existing account that you had in your name, then you may have tax issues.

Only a spouse who inherits IRAs may retitle them into his/her own name. Other IRA beneficiaries may transfer inherited IRA accounts, the but the account has to be styled something like, Deceased's Account for the benefit of Beneficiary.

Unless you had an existing beneficiary account from some other inherited IRA, I do not see how you could have transferred the inherited IRA to an existng account without triggering a distribution and tax liability.

Perhaps I am misunderstanding.

Regards, JAFO
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