inheridted IRA, form not filled correctly,
Fidelity will not pay benifiary because form not check box in right spot
They will only pay to the Estate of and puts it in a 40% tax bracket
We have probated the Estate to get payment
Are there options to lesson the tax bite
Permalink Submitted by Alan - IRA critic on Wed, 2018-04-11 19:59
The estate should file Form 1041 to report the income for distributions to the estate and pass that income through to the beneficiary of the estate on Form K 1. The executor also assign the IRA to the beneficiary of the estate and after that the RMDs and other distributions can be paid to and reported directly by the beneficiary. The estate should not have to pay taxes at the higher estate rates.