November 9, 2012

Inherited IRAs



"Inheriting an IRA from a deceased spouse or parent involves a lot more than simply transferring the assets to a new bank account. If certain rules established by the IRS are not followed, the inheritance will be taxed immediately on the entire amount.
The greatest gift that an individual retirement account brings is that the interest, dividends and capital gains are allowed to grow tax-deferred, so experts say it is better to leave as much money as possible in the account. But in order for an IRA to keep its tax advantages, in most cases it must be renamed or retitled to reflect that it was inherited from someone else." 
Check out the details in this article by Tim Grant in the Pittsburgh Post-Gazette

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