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emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2313
Experience:  IRS licensed Enrolled Agent and tax instructor
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Is ROTH IRA from mother (deceased, 70s) to son and daughter

Customer Question

Is ROTH IRA from mother (deceased, 70s) to son and daughter (each adults, over 30), upon mothers death, taxable by state of Pennsylvania?
Submitted: 11 months ago.
Category: Tax
Expert:  emc011075 replied 11 months ago.

Hi. My name is ***** ***** I will be happy to help you.

Distributions from a retirement vehicle (IRA, ROTH IRA, 401K) directly to trust or beneficiaries are not taxable in PA.

http://www.revenue.pa.gov/FormsandPublications/FormsforIndividuals/Documents/Personal%20Income%20Tax/2014/2014_pa-40in.pdf

Scroll down to page 11, under Distributions from Employer-Sponsored Qualified Retirement or Deferred Compensation Programs - point 4.

Expert:  emc011075 replied 11 months ago.

PA is very generous when it comes retirement accounts. Distributions to beneficiaries are usually tax free, there may be tax on early distributions or distributions that don't follow normal distribution rules but that's not your case.

I see you offline now. So if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. You find the rating bar on the top of the page – 5 stars. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.

Expert:  emc011075 replied 11 months ago.

One of the other experts pointed out the still existing PA inheritance tax. It is not state income tax and the inheritance will still be excluded from your state return. Inheritance tax is a separate tax charged by very few states. Inheritance tax return is filed and inheritance tax is paid by the representative/executor of the estate or the transferee if there's no executor, not the beneficiaries (unless the beneficiary is also the transferee)