Are distributions of a retirement plan or IRA of the deceased taxable?

Typically, yes because it is considered income with regards to the decedent. The tax is due by the recipient because the deceased had not paid the distribution’s income tax. You may be entitled to a deduction for a segment of the estate taxes paid, if the account’s value was incorporated in the estate tax return of the decedent.

Posted in: Death of a Loved One

(530) 542-3722
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