Louisiana Law | Louisiana Law Topics | Probate (Moderator: CW) | Inheriting an IRA
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Site Author : Topic: Inheriting an IRA  (Read 552 times)
February 05, 2010, 10:30:18 AM
mommatee
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What are the tax/penalty laws on inheriting an IRA? The IRA is for $36,000 but the adult children will need $10,000 of it to pay for the funeral.  Thanks.
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February 05, 2010, 10:48:58 AM
lex
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Basically, a person who inherits an IRA is in the same tax situation as the original owner. So, any money withdrawn will be subject to income taxes as regular income at that person's income tax rate.

An IRA with a living, named beneficiary is not considered part of the deceased's estate in Louisiana, so only IRA distribution rules are relevant.
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February 05, 2010, 10:56:47 AM
mommatee
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Thanks Lex!
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