the current exclusion is over $12 million. IRA and all other retirement accounts are deemed to be items of income in respect of a decedent (IRD). They're part of the estate and eligible for the estate exclusion. however, there are specific rules for the heirs regarding the time frame to withdraw the money. like RMD's. failure results in penalties. AS IRD the distributions can be taxable to the distributes to the extent of the taxable portion of the distribution.
