Inherited IRA … Do I have to pay tax on the IRA this year?

If you are spouse and your spouse died before 70.5 years of age, you can either use the Five-Year rule or use the life expectancy from the Single Life Table:

Five Star idea: The Required Minimum Distribution can be postponed until the year your spouse would have attained age 70.5 years. Living Spouses can roll an inherited account over to their own IRA or employer’s plan account. If the Living Spouse is younger than her/his deceased spouse, the Living Spouse can wait until must start taking a required amount out in the year after turning 70.5 years.
Example, Mary Doe, the Living Spouse is 65 and her late husband dies at age 59. Mary can wait until her late husband would be required to take a minimum IRA distribution in the year after he would have reached 70.5 years.

Since IRA rules are quite complex, please call Jeffrey Brooks at 602-292-2009 to discuss to make sure that you get the correct information.

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About Jeffrey Brooks

Jeffrey Brooks, CPA, CFP, MBA since 1976 has specialized in helping clients save significant taxes, help businesses increase their cash flow, revenues and profits while increasing their control and satisfaction. Jeff and his accounting firm sincerely cares about the happiness of his clients.

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JBrooks Wealth Advisors, PC.

Certified Public Accountant
Address: 4647 N 32nd Street, Suite B245
Phoenix, Arizona 85018
Phone: 602-292-2009