inherited IRA…I am only 45
I inherited an IRA. I am only 45. What can I do with it? My mother listed me and my 81 year old father as equal beneficiaries. I was told I can not “roll it over” to him. Is that true? Do I have to cash it out and lose much of it to taxes?
Permalink Submitted by Alan - IRA critic on Thu, 2017-09-21 23:04
You need to establish a separate inherited IRA with your share no later than 12/31 of the year following the year of her death. Then you can take life expectancy RMDs each year and stretch the inherited IRA for decades. You can take out more if you wish. There is no penalty unless you fail to take out the RMD amount. Your father should roll his share over to his own IRA assuming they were married at the time of her death. If you do not want your share you can file a qualified disclaimer up to 9 months after her death, and then your share will be inherited by your father. There are other details about filing a disclaimer, so you would probably need a tax attorney to draft it.