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Retirement tax questions
My FEELING is that the distributions, if deposited in an ordinary bank account, would be taxable, but I don't have a cite for that pro or con.
My reasoning, such as it is: if an IRA owner could avoid distributions to beneficiaries being taxable to the beneficiaries by reason of having the IRA escheated to the state, then what a slick planning tool that would be for someone knowing that they are not going to make it to the point of having to take RMD's. They tell the beneficiaries to check the state's escheated funds page every day and call the minute the IRA pops up.
Perhaps someone has a better answer from the standpoint of "support'. This has to have happened a few thousand times since IRA's were invented.
My reasoning, such as it is: if an IRA owner could avoid distributions to beneficiaries being taxable to the beneficiaries by reason of having the IRA escheated to the state, then what a slick planning tool that would be for someone knowing that they are not going to make it to the point of having to take RMD's. They tell the beneficiaries to check the state's escheated funds page every day and call the minute the IRA pops up.
Perhaps someone has a better answer from the standpoint of "support'. This has to have happened a few thousand times since IRA's were invented.
‎June 1, 2019
9:24 AM
5,971 Views