NY New York Pension and Annuity Exclusion
Hello! I have an NY resident client who inherited an IRA from his mother who was a FL resident. She was over 59 1/2 at death. Are he and his fellow NY resident beneficiaries eligible to split the $20,000 exclusion?
Thank you!
Permalink Submitted by Alan - IRA critic on Wed, 2021-04-07 17:24
Yes, each NYS resident beneficiary must pro rate the 20k exclusion by the % of the IRA they inherited. For example, if there were two equal NYS beneficiaries and no others, each would have an exclusion of 10,000. But if there were 4 equal beneficiaries with two residing outside NYS, Pub 36 is not clear whether that would reduce the exclusion for the NYS beneficiaries to 5000 or not.
Permalink Submitted by Michael Frontera on Thu, 2021-04-08 14:28
Thank you very much! It doesn’t matter that the decedent was not a NY resident?