turbotax icon
turbotax icon
turbotax icon
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Is there no tax if I use my inherited IRA to pay off a debt of my deceased parent?

 
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

3 Replies

Is there no tax if I use my inherited IRA to pay off a debt of my deceased parent?

don't spend the entire IRA on debt, or you won't have any money to pay the income tax at tax time.

Is there no tax if I use my inherited IRA to pay off a debt of my deceased parent?

False ... any IRA distribution you take is taxable to you  no matter what you use the money for...however there is no 10% penalty on inherited IRAs.   Before you do anything you may want to seek guidance from a local attorney as you may not need to pay off the debt. 

Is there no tax if I use my inherited IRA to pay off a debt of my deceased parent?

Totally agree.  Unless you co-signed for the debt, his Estate (not you personally) is responsible for the debt.  But who was retirement plan beneficiary?  His Estate or you personally?

Manage cookies