We live in Washington state and my 87 year old mother inherited an IRA of 91,000. She is choosing to get the lump sum, how much income tax should we have taken out?
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1 Replies
CatinaT1
Expert Alumni
Jul 14, 2020 7:48:57 AM
You will pay federal income tax on the amount withdrawn at whatever income tax rate you fall under for the year. If she is choosing to take all of it out, I would have them withhold the maximum 20%. You will not be taxed on this in Washington state.