topic Re: IRA inheritance in State tax filing

IRA inheritance

MGFedorko — Wed, 19 Jun 2019 15:00:27 GMT

I inherited an IRA from my mother and elected to take a lump sum payout. I live in Missouri, she lived and died in Pennsylvania. How do I plan for state tax on the payout?

Re: IRA inheritance

Critter — Wed, 19 Jun 2019 21:25:46 GMT

You only pay taxes in the state where you live when you got the distribution. Have withholding for that state or increase your withholding somewhere else like a job or make an estimated payment.

Re: IRA inheritance

Hal_Al — Sat, 22 Jun 2019 15:11:11 GMT

You will only pay tax to your home state of MO. That is not considered "PA source income". You do not need to file a PA return, because of the IRA distribution.

By contrast, if you inherited her home and sold it, for a profit, that sale would be PA source income; because the ''asset'' is physically located in PA.