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jarminio-sdi
New Member
posted
‎October 3, 2019 6:13 AM
last updated ‎October 03, 2019 6:13 AM

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

 
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fanfare
Level 15
‎October 3, 2019 6:24 AM

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.

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Critter
Level 15
‎October 3, 2019 6:24 AM

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. 

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SweetieJean
Level 15
‎October 5, 2019 5:01 PM

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?

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