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Is there no tax if I use my inherited IRA to pay off a debt of my deceased parent?
posted
October 3, 2019
6:13 AM
last updated
October 03, 2019
6:13 AM
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3 Replies
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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.
October 3, 2019
6:24 AM
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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.
October 3, 2019
6:24 AM
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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?
October 5, 2019
5:01 PM
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