Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 4
It seems to me that people tend to forget a couple of things about IRAs.

1. The I stands for individual - no implication at all about inheritability.
2. It's not all the individual's money. A portion of it belongs to the government as taxes that have been deferred.

The inheritance rule of 5 or 10 years to unwind it seems generous to me. The inheritor acquires the asset value but the tax situation is not inherited. Their particular tax situation should apply to their inheritance as they gain it. Or conversely, the IRA could be unwound at the individual's death and be taxed according to estate tax rules.
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.