Do heirs have to pay tax on money from an IRA?

Minneapolis, MN estate planning attorney Cameron R. Kelly talks about whether or not heirs have to pay tax on money from an IRA.

Contact Cameron R. Kelly

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Phone: (715) 381-7112

Transcript:

Yes, so it will depend on what kind of IRA. Roth IRAs when you take money out of them that money isn’t taxed but in a traditional IRA that money goes into the IRA pretax and so when it comes out, it does get taxed even to the beneficiaries of the IRA. And so the answer is yes, even if there’s no estate tax you will pay tax on the money as it comes out of an IRA.