Non Spousal Inherited IRA
We have a client that has passed. She only had one beneficiary. The beneficiary wants to give half to her sister, but she is wanting to take it as a non spousal ira. Is there any way to give her sister half with out a tax consequence for the original beneficiary?
Permalink Submitted by Alan - IRA critic on Tue, 2023-05-09 17:59
If the sister was named as contingent beneficiary on the IRA, a partial disclaimer of 50% could be done without tax implications. Otherwise, the beneficiary might take a distribution and make a tax adjusted gift to her sister, since the beneficiary would owe taxes on all distributions and the sister would not owe taxes on the gift. The annual gift exclusion is 17,000 this year.