How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask taxmanrog Your Own Question
taxmanrog, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 492
Experience:  Licensed CPA, MA, MST with 31 years' experience. Teach Accounting and Tax courses at Masters level.
Type Your Tax Question Here...
taxmanrog is online now
A new question is answered every 9 seconds

I am the beneficiary of my deceased fathers IRA accounts.

This answer was rated:

I am the beneficiary of my deceased father's IRA accounts. How will this inheritance effect me regarding income taxes. I am under 59 1/2. I are in the process of buying a home would like to get the down payment from these recently inherited IRAs. Also, I am the beneficiary of his pension from his former employer; he retired before is death.

Welcome to Just Answers! Thank you for giving me the opportunity to assist you! I will do my best to help!


I am sorry for your loss! You have my condolences!


You can take the IRA payments out in a lump sum, over a five year period, or over your remaining life expectancy. In any of these cases, the amount that you take out will only be subject to regular income tax. The 10% "penalty" tax that is assessed under §72 for early distributions from an IRA does not apply to distributions due to death. So all you will pay is income tax at whatever your marginal rate is.


The same goes for your dad's pension plan. The amounts you receive each year will be reported on a Form 1099-R, just as the IRA distributions would be. They also would be subject to only regular income tax.


I hope this answers your questions! If you have any more, please let me now, and I will answer them. If my answer has been helpful, please rate me highly. I would appreciate it!


Again, thanks! Have a great week!



taxmanrog and 5 other Tax Specialists are ready to help you