Have a Tax Question? Ask a Tax Expert
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You won't have any income taxes to pay on the CDs, but you will on the annuities & the IRAs.
As far as the IRAs are concerned, you will have some options available to you depending upon a number of factors including if your mother has reached her "required beginning date" (April 1st of the year following the year she turns 70 1/2). Also, depending upon your age at the time.
Will I have any other taxes to pay? And only txes on the interest earned on the annuity and Ira?
The botXXXXX XXXXXne is that you should be able to spread the payments out over your lifetime, depending upon those factors as well as what the plan provides.
My mom is 88, I am 61.
On the IRAs it isn't the interest, it is the whole thing, as you take it out.
OK well she is already taking minimum distributions from the IRA.
As far as the annuity goes, you will pay tax on the same basis as your mother is paying tax. There are a number of factors that enter into it, but again, she should have correspondence and the annuity contract that will give you the information, as well as the company will be able to respond to any questions you have.
I would strongly advise you to seek local tax advice before you do anything with either the IRAs or the Annuity at the time your mother dies and you have to make the elections as to what you are going to do.
Thank You very much. Have a good day.
Does she live in her own home that you will inherit?
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