Question

Inherited IRA

Forum|Forum|2 years ago
October 25, 2023
1 reply
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I inherited an IRA from my husband. I would like to transfer it to my stepdaughters. What would be the best way to do it with minimum tax implications?

Ask the Experts - Extension - Sept 2023

TeriH

You can "disclaim" the inheritance.

The disclaimer must be in writing and delivered to the person or entity who is holding the property (in this case the IRA provider) within nine months after the death of the original transferor (Rose, in this example). (If the disclaimant is under age 21, the nine-month deadline starts running when they reach age 21.) Because there is no mechanism for extending this deadline, it must be strictly adhered to.

This is the best article I have found from Morningstar to discuss if you qualify and it's a good option for your situation.

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