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Inherited IRA?
My Father passed away. He had an IRA with Edward Jones. Clearly states beneficiary 100 percent is my sister. My father was 86 at death. She is asking me questions. Am i correct. She has two options. Lump sum distribution she wouldn't face penalty however would have to pay taxes or Turn it into inherited ira account and take a yearly distribution. Amount of IRA 94,000 and change. Thanks.
Ps would she have any other options.
5 Answers
- GregLv 72 years agoFavorite Answer
It is an inherited IRA she cannot turn it into one. If he was taking annual distributions, and of course he was required to, then she must continue to take them. She must pay income taxes on all distributions. Taking a greater amount in one year could raise her incremental tax bracket.
- Anonymous2 years ago
95% sure the Edward Jones rep could correctly answer this.
I do know its taxable unless it was a roth. And its likely her choices are lump sum or over her estimated lifespan.
- Anonymous2 years ago
Of course this is better answered by a tax accountant in person in your location.
Use this==
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- hamel5Lv 72 years ago
That's pretty much it. Since your father was over 59.5 yrs at death, there's no penalty for withdrawals - but , they are taxed.
