Announcement

Collapse
No announcement yet.

Bene IRA

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Bene IRA

    A bene IRA I received from my mother is now 13 years old. I am aware that I need to remove all of the money as it has been longer than 12 years.
    But my question is this:
    How much tax will I need to pay on the way out?

    Details:
    I inherited the bene IRA and it had $10K in it. However, in the past 9 months it gained $5K, i.e. is now $15K total.

    1) If I remove $5-10K now, what would be the taxes?

    I want to wait to remove anything more than the basis prior to one year from it going up by $5k, this way I can avoid STCG (short term capital gains); and then remove the last $5K (if its still worth that much more) after the 12 months has occurred - then I can merely pay LTCG.

    2) is this correct thinking?

    Thanks.

    3) I presume I may have to pay a penalty for keeping the $ in the IRA one year longer than the required 12 year max. However, I though I also read that there was a one-year extension due to the pandemic? Way off?

    Thanks again.

  • #2
    Nothing has changed since your previous thread:
    https://forum.whitecoatinvestor.com/...-inhereted-ira
    I'd do what spiritrider recommended.

    Comment


    • #3
      I have completed the 2019 withdrawal requirement and the one for this year (2021), sent that documentation with an explanation to the IRS. I guess I will hear back from them about penalty waived or not... perhaps I'll hear back by 2025?

      Comment

      Working...
      X