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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2846
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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I am 65 years old. I am going to receive an Inheritance of

Customer Question

I am 65 years old. I am going to receive an Inheritance of about 100,000. Am I eligible to invest it in retirement funds. which types? I live in New York do I have to declare it on my income taxes?
Submitted: 1 year ago.
Category: Tax
Expert:  Barbara replied 1 year ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you today.

Cash inheritances are not taxable and do not get reported on your tax return.

You can invest your inheritance in whatever you choose--stocks, bonds, CDs, money market accounts, etc. You will then pay taxes on the interest/dividends earned on those investments.

Please let me know if you require further information or clarification.

Thank you and best regards,

Barb

Customer: replied 1 year ago.
I need to invest in retirement type investments. to cut down on my taxes. can i still do that at this age?
Expert:  Barbara replied 1 year ago.

I understand.

For traditional IRA, you can contribute until the age of 70 1/2.

For Roth IRA, you can contribute after age 70 1/2 as long as you have earned income, and you don't have to make required withdrawals.

The following link contains excellent information regarding the contribution limits and other information you will find helpful:

https://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-IRA-Contribution-Limits

As I mentioned, there are other ways to invest the money that will generate income.

Expert:  Barbara replied 1 year ago.

Just following up with you to see if you have any other questions. If so, please come back to me here at your convenience, and I will be happy to assist you. If not, please take a moment rate my answer since that is the only way I receive credit for answering you and alerts Just Answer to compensate me for a portion of the fee you previously paid.

Best regards,

Barb