Post death IRA income
This question is from the beneficiaries of their mother’s IRA. The mother died in September 2012. The beneficiaries will set up inherited IRAs but they wondered if they can take advantage of their mother’s low income tax bracket by taking out a few thousand dollars from her IRA (in addition to her RMD) prior to the transfer into their inherited IRAs? Is there a rule where all distributions from an individual’s IRA after death must be reported by the beneficiaries?
Thank your for your help!!!!
Permalink Submitted by Denise Appleby on Thu, 2012-10-11 18:53
[quote=”[email protected]“]This question is from the beneficiaries of their mother’s IRA. The mother died in September 2012. The beneficiaries will set up inherited IRAs but they wondered if they can take advantage of their mother’s low income tax bracket by taking out a few thousand dollars from her IRA (in addition to her RMD) prior to the transfer into their inherited IRAs? Is there a rule where all distributions from an individual’s IRA after death must be reported by the beneficiaries?
Thank your for your help!!!![/quote]
Yes. There is such a rule. Generally, all distributions that occur after the death of the IRA owner must be reported under the TIN of the beneficiary (ies).