Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

My husband in the beneficiary of an IRA account that has a…

Customer Question
My husband in the...

My husband in the beneficiary of an IRA account that has a life insurance rider. Can he roll the "IRA" portion of the account into an inherited IRA and take the "Life Insurance Portion" be tax-free? Thanks!

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

My father-in-law past away and left his IRA account (which is in annuities) to my husband. We are working to reduce the tax burden. We are looking at options and one thought was to roll over the IRA portion into an Inherited IRA account but take the Life Insurance portion of the account as a lump sum payout in order to pay bills from the estate. We were wondering if the life insurance portion would be tax free?

Accountant's Assistant: Is there anything else the Accountant should be aware of?

Such as?

Submitted: 1 month ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 19 minutes by:
3/14/2018
Tax Professional: Lev, Tax Advisor replied 1 month ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,692
Experience: Taxes, Immigration, Labor Relations
Verified

the "Life Insurance Portion" be tax-free - when paid to the IRA account.

But when distributions are taken out of IRA account - that distribution will be taxable.

Sorry if you expected differently.

You might want to avoid large distribution in any single year as that might push taxable income into higher brackets.

So you may want to watch total income (including distribution) and try to stay in lower brackets if possible and spread distributions over several years.

Please elaborate your options.

Ask Your Own Tax Question
Tax Professional: Lev, Tax Advisor replied 1 month ago

I appreciate if you take a moment to rate the answer.

Experts are ONLY credited when answers are rated positively.

If you still have any doubts, need clarification - please be sure to ask.

I am here to help you with all Social Security / Tax related issues.

Ask Your Own Tax Question
Was this answer helpful?
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,692
32,692 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,451 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

56 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,124 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I had no taxable income for 2017, but am supposed to file a
I had no taxable income for 2017, but am supposed to file a tax return in order to establish I qualified for Premium Tax Credits received through Healthcare.gov. What should I do? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,931 satisfied customers
VA income tax return form 760, Line 16, “ Taxable Income -
VA income tax return form 760, Line 16 , “Virginia Taxable Income - Subtract Line 15 from Line 9” what are the two bubbles “DTD” and “LTD” ? Should I fill in one ?… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Looking for estimated tax rate for 500,000 income in 2017.
looking for estimated tax rate for 500,000 income in 2017 … read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,451 satisfied customers
I failed to take a mandatory inherited IRA distribution in
I failed to take a mandatory inherited IRA distribution in 2017, taking it on1-3-18. Do I report that I took the 1-3-18 money on my 2017 return or just include form 5329 with return? … read more
abci168
abci168
Principal
27 satisfied customers
Self employed. after deductions, my taxable income is $4000.
self employed . after deductions, my taxable income is $4000. will i have to pay tax on that amount? thank you … read more
Cole Parker
Cole Parker
Principal/CPA
Bachelor\u0027s Degree
86 satisfied customers
My only taxable income is $2287.10 from IRA distribution. I
My only taxable income is $2287.10 from IRA distribution. I am rated 100% VA disabled. My social security and VA pension are non-taxable. I have no other reportable income. How do I determine if I owe… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,124 satisfied customers
I'm looking to reduce our tax burden on our skin care
I'm looking to reduce our tax burden on our skin care manufacturing business. We have an LLC and pay high state taxes. I've heard that incorporation in Wy. or Nev. could lower our taxes. A scheme of u… read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
Is social security a taxable income? Indiana. None
is social security a taxable income? JA: What state is this in? It matters because laws vary by location. Customer: Indiana JA: What steps have been taken so far? Customer: none JA: Anything else you … read more
Mike-USACPA
Mike-USACPA
9 satisfied customers
Is a settlement from employment taxable income? My husband
My husband received a settlement from his employer as he was no longer able to work as a patrol officer due to injuries. He had to take medical retirement … read more
Lev
Lev
Tax Advisor
32,692 satisfied customers
Required minimum distribution from an inherited IRA (income
required minimum distribution from an inherited IRA (income reported on 1099-R) Can a charitable gift prevent/offset the tax on the distribution?… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
921 satisfied customers
My wife and I made 80,000 in taxable income in 2017. We have
My wife and I made 80,000 in taxable income in 2017. We have three kids. And have a mortgage. How any exemptions should we each claim on our w4s with the new tax laws. We will earn about 4,000 more th… read more
Lev
Lev
Tax Advisor
32,692 satisfied customers
I am self-employed, MFJ, with taxable income of $43k. We
I am self-employed, MFJ, with taxable income of $43k. We sold our 2 kids' (both under 18) stock accounts with LTCG's of around $34k each. Since LTCG tax rates are 0% for individs under $37,950, are th… read more
Lev
Lev
Tax Advisor
32,692 satisfied customers
How much tax do I owe on $1.350.00 taxable income. 1040A
How much tax do I owe on $1.350.00 taxable income. 1040A Line 25. … read more
Lev
Lev
Tax Advisor
32,692 satisfied customers
In regard to inherited property, does the beneficiary HAVE
In regard to inherited property, does the beneficiary HAVE to use the stepped up basis or can the decedent's basis be used instead? What if you cannot determine what the basis would have been at the t… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,931 satisfied customers
Had an IRA which was created with taxable income (should
had an IRA which was created with taxable income (should have been a Roth IRA) rolled it over into a Roth account,its gains are not taxable what form or forms do i need. … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Is there a strategy to curb the tax burden on gains made in
Is there a strategy to curb the tax burden on gains made in my taxable retirement account? I recognize that ideally this should Happen in my 401K or IRA but I've had about 6% gains that I appreciate b… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
921 satisfied customers
Suppose my taxable income in 220,000 this year and the tax
Suppose my taxable income in 220,000 this year and the tax rate is X up to 200K, but Y for 200and over, do I pay Y on the full 220K or just that above 200K? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Under current law a 100,000 taxable income pays $10,365 plus
Under current law a 100,000 taxable income pays $10,365 plus 25% of the amount exceeding $79,400 i.e. about $16,000. Under tax reform will the tax be $25,000? … read more
Lev
Lev
Tax Advisor
32,692 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x