I know it is considered taxable income i'm just not sure about the 10%. There were no benificaries listed so all 4 of us are splitting equally.
2006-07-26 06:25:46 · 7 answers · asked by abelincolnshat 1 in Business & Finance ➔ Taxes ➔ United States
Ask the lawyer that handled your dad's estate.
2006-07-26 06:28:24 · answer #1 · answered by Flora_54 2 · 1⤊ 1⤋
The 10% should not apply. You will receive a 1099 form at year end reporting the amount of income. Box 7 of that form will have a distribution code 4 which is a distribution due to death. That code is not subject to the 10% early withdrawal penalty.
2006-07-26 08:10:21 · answer #2 · answered by Anonymous · 0⤊ 0⤋
depends on what the terms of the ira was when you dad took it out. if its listed as a 10% penality for early withdrawal then you have to pay that 10%. Did your dad pass 65 when he pass? if yes then that 10% should not apply because he already pass the 65 age required to take out the IRA. check with a lawyer or bank that deals with the IRA.
2006-07-26 06:34:12 · answer #3 · answered by Jeff L 4 · 0⤊ 0⤋
ASK A PROBATE LAWYER!! These things can come back and bite you in the behind if you make a mistake. Don't do anything until you are 100% sure about it
2006-07-26 06:29:26 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Jeff L doesn't have a clue. Dave seems to know what he's talking about.
2006-07-26 12:47:55 · answer #5 · answered by STEVEN F 7 · 0⤊ 0⤋
Dave's got it right.
2006-07-26 15:27:50 · answer #6 · answered by taxmannyc 3 · 0⤊ 0⤋
No it is not.
2006-07-29 08:09:32 · answer #7 · answered by Crazy girl 2 · 0⤊ 0⤋