ira question?

The early withdrawal penalty is not 50%.

Even if it was 50%, You think $6400 is nothing? Feel free to send it my way and I will take that "nothing" off your hands.

There might be no fee if you leave it in an IRA and take it out after you retire.

Its not his fault for having an IRA. They are good deals. I put barely $20k in mine and now its worth over 20 times that.

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Generally, early withdrawal from an Individual Retirement Account (IRA) prior to age 59½ is subject to being included in gross income plus a 10 percent additional tax penalty. There are exceptions to the 10 percent penalty, such as using IRA funds to pay your medical insurance premium after a job loss.

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https://www.fidelity.com/viewpoints/retirement/non...

Just go through the process to close it out and don't mention the RMDs that he didn't take unless someone else does. The IRS has a process for forgiveness of the penalties - if it comes up, you might have to deal with that paperwork.

His estate would be responsible for the taxes. Though I am wondering about your comment that he was 86 when he passed had not withdrawn any money. The IRS requires that a minimum amount be withdrawn starting when he was 70 and half. So there may be some penalties involved. A tax accountant can probable give you more detailed information.

Investments like IRAs 401Ks and brokerage accounts usually require a "secondary beneficiary", meaning a named person or persons to whom the monies will be distributed to upon the main beneficiaries (owner of account) death.

These by-pass inheritance laws (probate) and go directly to the inheritor, who can do several things including "rolling it over" into their own account.

There are special rules for inherited IRAs, which reduce the taxes that the person inheriting the IRA has to pay.

Here's a summary: https://www.schwab.com/public/schwab/investing/ret...

Well you can’t decide when you want to die. Maybe he never talked to you about the money because he wanted them for himself and didn’t want to tell y’all. When you are old you don’t work but you spend like every normal person. Yes you get some money but you always want to make sure you are okay in every case could happen. Saying “its his fault” is very rude and inappropriate