IRA Distribution for Decendent
A 70 year old female passed away November 2014 with $175,000 in her IRA. Her only beneficiary is her son who is in a high marginal tax bracket and high state taxes. Can a large distribution be taken from her IRA this year in 2014 so that taxes will be paid by the decedent’s estate at a lower tax rate on her 2014 tax return.
Permalink Submitted by Jose Morales on Wed, 2014-12-17 18:02
No, not if he wishes to continue as the beneficiary of the IRA. A deceased person cannot take a distribution from their IRA. He cold possibly disclaim, and if there were no other beneficiary the estate may be the defualt beneficiary (verify on the plan document), but then he would no longer be entitled to the funds.