Estate tax on rollover over IRA to non-spousal beneficiaries

The pension protection act of 2006 now allows non-spouse beneficiaries to roll over assets inherited from a qualified retirement plan into an IRA. What are the estate tax implication if this IRA is rolled over to a non-spousal beneficiary?

> > > > > > > > >
Reply to
susheth
Loading thread data ...

None. The value of the IRA is included in the decedent's estate regardless of who the beneficiary is.

Reply to
Herb Smith

No different than before, really. Prior to this, a 401(k) could be inherited, but not not rolled into an IRA if beneficiary was a non-spouse. This is separate from the estate tax which would be paid by the decedent's estate if over a certain amount. Any retirement funds (except Roth IRA) are part of that estate. JOE

Reply to
joetaxpayer

to estate tax like any other asset included in the taxable estate. If you want the roll over to be effective, you need to provide another source for the payment of estate tax attributable to the qualified plan.

Reply to
Jon Gallo

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.