Discussion:Inherited IRA's
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Discussion Forum Index --> Tax Questions --> Inherited IRA's
| 25 June 2007 | |
| Mom died she is 50 years old. Her beneficiary to the IRA is her daughter.
Question: What are the tax consequenses? I know she has to take the distributions? Can she spread the income over a few years? Is there a penaly for early distribution because the mom was only age 50? Thanks | |
| 25 June 2007 | |
| There are several options available. The daughter can take the distribution now; that would be subject to tax but not the 10% penalty. She can also elect to leave the money in the account for up to 5 years. The other option is to leave the funds in the account and take the money out over the course of her lifetime using the single lifetime table. | |
| 25 June 2007 | |
| [Notice 2007-7]
Caryn; might want to look at this as well ! | |
| 25 June 2007 | |
| The IRA gets renamed as mother, deceased, fbo daughter. Or something to that effect, I don't know the exact wording. Daughter can name her bene and the payments can cover 2 lifetimes. | |
| 22 August 2007 | |
| Son is non-spouse beneficiary of dad's IRA. Dad died in 2007 at age 67. Dad had been taking distributions from his IRA prior to death.
I have read and re-read Notice 2007-7 - Part V re: Section 829 of PPA 06. My impression is that, because dad had not reached required beginning date prior to his death, son can use his (vs dad's) life expectancy tables to compute required distributions from the properly set up inherited IRA. Son's brother's advisor has indicated that they (son and brother) must use dad's life expectancy table to compute RMD. What life expactancy table should be used? If dad's, did dad's drawing on the IRA prior to required beginning date affect this, or is there some other reason? | |
| 22 August 2007 | |
| life expectancy of oldest named beneficiary or split into 2 inherited IRAs and use each son's for his own.
Dad was not beyond his RBD before DOD. | |
