IRA inheritance question
Hello,
I am set to receive an inheritance that is a mix of money and property. A portion of the money is being paid out from an traditional IRA, for which I would be taxed on. The dollar amount is approximately $12,000. Would I be smarter to roll that money over and open my own IRA to avoid the taxes or is the amount in tax to be paid really not that significant?
Terry Says
You should IMMEDIATELY ask the IRA custodian to ROLL IT OVER into an “inherited IRA.” You will be able to delay withdrawing all the money for 10 years, during which it can continue to grow tax-deferred. When you do take it out — whether annual withdrawals or the final lump sum — it will be taxed at your then-current ordinary income tax rates.
