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TMF Taxes wrote:
<<But, again, this issue is at the ESTATE level...not necessarily at the beneficiary level. So this question should be directed at the attorney who is dealing with the estate and estate tax issues. >>


<<It'll be treated as ordinary income to you and will be taxed at your marginal tax rate...whatever that rate happens to be. It could be different for all of you. And while I'm not familar with Penn state laws, you would generally not be taxed in Penn for taxes on the IRA distribution, unless Penn is your resident state.>>

My condolences on your loss. My father was a resident of Pennsylvania and I just recently had experience with PA tax laws. The one item that surprised my brother and me was that his beneficiary-driven IRAs counted as taxable assets in his estate. They were taxed at the 6% rate.
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