naming an organization as a beneficiary
If an individual names a non-profit organization as a beneficiary of a traditional IRA, what is the tax treatment at the time of death?
If an individual names a non-profit organization as a beneficiary of a traditional IRA, what is the tax treatment at the time of death?
Permalink Submitted by Alan Spross on Tue, 2011-10-18 17:16
See the following link. If the non profit has tax exempt status, there are no taxes upon cashing out an inherited IRA. If not tax exempt, IRA funds are taxable as ordinary income. Some organizations might be partially tax exempt, with taxes only on a portion of the activities:
http://www.investopedia.com/ask/answers/08/nonprofit-tax.asp#axzz1b9dY4SDt