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Subject:  Re: Inherited IRA Date:  1/3/2004  1:27 PM
Author:  ptheland Number:  38355 of 96093

Since my Mom is 74 and has limited income (Ive been supporting her)she originally preferred that the distibution go to me (I was listed as a secondary beneficiary) so I could handle the tax side of things.

That might be a really bad idea tax-wise. Since you mom has limited income, her tax rates are going to be pretty low - likely lower than yours.

All of the distributions from the IRA are going to be taxable to whoever receives them (assuming this is a traditional IRA, not a Roth). Since her taxes are probably lower than yours, your family's tax burden will probably be less if she receives the income.

You could certainly help her out by keeping track of her income and preparing her taxes for her. All she'd have to do is sign the return.

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