Inherited Non Spousal IRA and Social Security
A client has inherited a non-spousal IRA of $88,000. She is currently receiving Social Security.
If she completes a direct transfer to a new beneficial IRA account what would the impact be on her income/ Social Security, if any?
Permalink Submitted by Alan - IRA critic on Tue, 2013-05-28 20:58
The transfer is not taxable, but she must start to take RMDs from the inherited IRA in the year following the owner’s death. These RMDs will be taxable and could result in more of her SS income becoming taxable in addition to the RMDs. Up to 85% of her SS could be included in her AGI. She also must complete the owner’s RMD for the year of death if the owner had not completed it before passing.