TAXMAN Posted November 10, 2015 Report Share Posted November 10, 2015 TP had regular IRA's and Roth IRA's. TP did not have beneficiary on any of the IRA's. TP died. TP has no spouse. Question is Does the estate of deceased have to cash them in or can they be passed out to an heir? What do you think? Quote Link to comment Share on other sites More sharing options...
ADGFINANCIAL Posted November 10, 2015 Report Share Posted November 10, 2015 If your IRA is left without a designated beneficiary, then it’s paid to your estate. When this happens, IRS rules dictate that the account has to be fully distributed within five years. So, even though your heirs ultimately share in your IRA funds, it’s likely that a good portion of those funds will be eaten up by income taxes. Plus, being distributed within five years significantly limits the life expectancy of your IRA, cutting short its growth – and its benefit to your loved ones. 3 Quote Link to comment Share on other sites More sharing options...
TAXMAN Posted November 10, 2015 Author Report Share Posted November 10, 2015 One notice I saw is that the estate(executor) can name a beneficiary and thus pass this IRA on as long as done by September of year following the year of death? This would give a longer life span to RMD it out if I read this rule correctly. tax-book pages 13-24 and 13-25. Or am I way off base? 1 Quote Link to comment Share on other sites More sharing options...
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