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Level 1

Question

i inherit money from a decease IRA do i pay taxes

Forum|Forum|1 year ago
February 11, 2025
2 replies
2 views

No text available

Level 15

Yes.

You pay taxes when you withdraw from an inherited traditional IRA.

And you have to follow specific distribution and RMD rules.

Please read this IRS document for more information.

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Level 15

Some details are missing.

If the estate cashed out the IRA, and paid the taxes, then the cash you get at the end is not taxable.

However, if you inherited the IRA as beneficiary, and cashed it out, that is taxable to you. IRA withdrawals are always taxable to someone because tax was not paid on the contributions. You would get a 1099-R from the custodian and you must report that on your return.