inheriting retirement accounts

When Inheriting Money, Be Aware of “Income in Respect of a Decedent” Issues

When Inheriting Money, Be Aware of “Income in Respect of a Decedent” Issues

Once a relatively obscure concept, “income in respect of a decedent” (IRD) may create a surprising tax bill for those who inherit certain types of property, such as IRAs or other retirement plans. Fortunately, there may be ways to minimize or even eliminate the IRD tax bite. Basic Rules For

Sonya Foster2022-03-23T14:14:39-06:00March 23rd, 2022|

Beware IRD: Not All Inherited Property is Tax-Free

Beware IRD: Not All Inherited Property is Tax-Free

Most people are genuinely appreciative of inheritances. But sometimes it may be too good to be true. While inherited property is typically tax-free to the recipient, this isn’t the case with an asset that’s considered income in respect of a decedent (IRD). If you inherit previously untaxed property, such as

Sonya Foster2021-04-12T14:56:26-06:00May 8th, 2018|