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Marsha411JD
Marsha411JD, Attorney
Category: Estate Law
Satisfied Customers: 19777
Experience:  Licensed Attorney with 29 yrs. exp. with Estate Law issues
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Can you gift an IRA to a living relative while you are still

Customer Question

Can you gift an IRA to a living relative while you are still alive
Submitted: 1 year ago.
Category: Estate Law
Expert:  Marsha411JD replied 1 year ago.

Hello,

Thank you for your question. No, unfortunately, under IRS rules an IRA cannot be gifted from one living person to another living person. The only mechanisms that can be used to give the proceeds of the IRA to another person is for the owner of the IRA to make withdrawals and then gift the money to another person or to name a beneficiary that will take the IRA proceeds upon the death of the owner.

Please feel free to ask for clarification if needed. If none is needed, then if you could take a moment to leave a positive rating in the box above, I will receive credit for assisting you today. Thank you.

Customer: replied 1 year ago.
Can she withdraw the money and give to me?
Expert:  Marsha411JD replied 1 year ago.

Thank you for your reply. I am not sure who "she" is. If you are asking if the owner of the IRA can withdraw money from their IRA and gift it to someone else then, yes, as I mentioned, that is one option. They will though have to pay regular taxes on the amount they withdraw.

Customer: replied 1 year ago.
My mother is 86 the taxes would not come into play unless she was 59. We are trying to figure a way to get it in my name. Any suggestions
Expert:  Marsha411JD replied 1 year ago.

Actually, only the penalty is an issue if someone is under 59 1/2, however, depending on the type of IRA, there can still be an income tax issue. I am not a tax professional, but just want to make sure the owner o the IRA understands there could be some tax consequence. But just to reiterate, she cannot transfer the IRA to anyone else. She has to make a withdrawal and give the money to whomever she chooses or wait and leave it to her named beneficiary when she passes.

Customer: replied 1 year ago.
No this works. Just want to make sure she can withdraw the money and put it in my name. Can she do that legally
Expert:  Marsha411JD replied 1 year ago.

Sorry for the delay in getting back to you but I am in an out of my office this morning, but yes, she can withdraw the money and give it to you. Once you are satisfied that I have answered your questions, if you would please click a positive rating option above, the Site will give me credit for assisting you. Thank you

Expert:  Marsha411JD replied 1 year ago.

Hello again,

I wanted to touch base with you and make sure that you did not have any further follow up questions for me from the answer I provided to you on the 4th. For some reason, the Experts are not always getting replies or ratings (at the top of the question/answer page you are viewing or in the pop up box for this question), which is how we get credit(paid by the Site) for our work, that the customer thinks have gone through. In your case I have still not received your rating. If you are having technical difficulties with reading, replying or rating, please let me know so that I can inform the Site administrator. Please note that Site use works best while using a computer and using either Google Chrome or Firefox.

In any event, it was a pleasure assisting you and I would be glad to attempt to assist you further on this issue, or a new legal issue, if needed. You can bookmark my page at: http://www.justanswer.com/law/expert-marsha411jd/

Thank you.

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