Message Font: Serif | Sans-Serif
No. of Recommendations: 1

My condolences. May your wife have a peaceful night.

My siblings and I inherited a couple of IRAs from Dad two years ago. He passed mid-December, not having taken an RMD from one of the accounts yet. After many rushed faxed forms they disbursed the RMD divided by the six of us, each of us accountable for the tax on our portion of the RMD. The tax on the RMD he had taken was taxed at his estate level, with the funds ending up in the general estate for distribution.

They then liquidated the account and put it into equal accounts in each of our names. IIRC it was some form of annuity rather than simple stocks and bonds. Some decided to take the tax hit and cash it all in, some of us chose to roll it over to an inherited IRA, but we all got to do it in our own time. I have been taking RMDs based on my age since then. RMDs are required for inherited IRAs.

One thing that kind of freaks me out is that the IRA is still titled in Dad's name. The brokerage was even sending Dad mail here at my address, until I told them to stop. Our mailman was having fits over it, with the name being different from mine.

Since you've already dealt with the RMD for this year, you should be able to ignore this for a while. I don't believe there is an end of year time crunch, as there was for us with one of the RMDs not yet taken.

Hugs and best wishes,

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.