Louisiana Law | Louisiana Law Topics | Probate (Moderator: CW) | Inheriting an IRA
*
Latest Forum Posts

*
Our Book 20% off
Louisiana Law Book
Click HERE to see how to order and for more information.
*
User
Welcome, Guest. Please login or register.
Did you miss your activation email?
March 10, 2010, 05:43:37 PM

Login with username, password and session length
*
Subscribe to La-Legal
Subscribe to our feed
*
Interesting Links
Site Author : Topic: Inheriting an IRA  (Read 186 times)
February 05, 2010, 10:30:18 AM
mommatee
User No : 482
Posts: 9
  • View Profile
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.
Logged
February 05, 2010, 10:48:58 AM
lex
Administrator
Honored Member +
*****
User No : 1
Posts: 3493
  • View Profile
  • WWW
  • Email
Email
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 So, any money withdrawn will be subject to income taxes as regular income at that person's income tax rate.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.
Logged
February 05, 2010, 10:56:47 AM
mommatee
User No : 482
Posts: 9
  • View Profile
Thanks Lex!
Logged