QUESTION
Is there any way out of paying the full tax if I take it out to give to my sibling?
Asked on Oct 10th, 2013 on Taxation - Michigan
More details to this question:
I inherited a Roth from a family member. The will stated that everything is to be divided equally with my sibling.
4 ANSWERS
Generally, receipt of amounts from an inherited Roth IRA are not taxable. As such, you should be able to withdraw the money tax free.
Answered on Oct 10th, 2013 at 3:34 PM
Chapter 7 Bankruptcy Attorney serving Lisle, IL
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Mankus & Marchan, Ltd.
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Inherited Roth IRAs are not taxed to the beneficiaries.
Answered on Oct 10th, 2013 at 3:34 PM
The Roth is paid to only those named as beneficiaries and is not influenced by the will terms. Assets for which a beneficiary are not named are divided equally. However, the Roth amount must be included in the estate to compute any estate tax.
Answered on Oct 10th, 2013 at 3:31 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Yes, it can be done with the tax to the actual recipient.
Answered on Oct 10th, 2013 at 3:14 PM