Legal Question in Wills and Trusts in Texas
Retirement Account Taxation
When I inherit some sizable retirment accounts as a beneficiary (IRA, 401-K) from my father can this just be rolled over into my name or must they be clsoed out and income taxes paid on them?
2 Answers from Attorneys
Re: Retirement Account Taxation
I believe that you can now roll them over (before the change, only the spouse could do a roll-over). However, check with a cpa to be sure.
Re: Retirement Account Taxation
A "stretch IRA" allows the IRA (but not the 401K!) to be rolled into a new account for non-spouse beneficiaries with all the tax protections attached, and subject to the same tax rules concerning the distributions. Of course, you need to be certain that your father's beneficiary's designations are current and actually name you first!
Your father should sit down with a well-recommended financial planner and an estate planning attorney to look at how his investments are working now -- don't wait until he's gone to figure out how to manage these funds!
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
