Generally speaking, an individual retirement account (IRA) is subject to inheritance tax if the owner of the account was age 59-1/2 or older at death, and an employer-sponsored pension, profit-sharing, or other form of retirement plan is taxable if the … Continue reading
Tag Archives: Individual retirement account
The tax clause in the will directed that the estate and inheritance taxes payable “with respect to property or interests passing my will” were to be paid from the residue without apportionment, and so under 72 P.S. § 9144(f), the … Continue reading
A premarital agreement that waived all rights to the “separate property” of the other spouse also waived all rights to an individual retirement account (IRA) following the death of the IRA owner even though the existence of the IRA might … Continue reading
An inherited individual retirement account (IRA) is not protected from the claims of creditors of the beneficiary because following the death of the IRA owner the account is not a “retirement account” within the meaning of 42 Pa.C.S. § 8124(b)(1)(ix). … Continue reading
A person who has been adjudicated incapacitated is presumed to lack testamentary capacity and the burden is on the proponent of the will to provide clear and convincing evidence of testamentary capacity, or at least a lucid interval. Testimony of … Continue reading
In “IRS Publication 590-B and 10-Year RMDs,” it was reported that IRS Publication 590-B had caused concerns about the application of the new 10-year rule, because examples in the publication made it appear that beneficiaries of inherited individual retirement accounts … Continue reading
An agent’s change of an IRA beneficiary was invalid when the decedent was obligated under a divorce settlement agreement to name his children as beneficiaries. Trembley Agent for Lasser, 10 Fid.Rep.3d 229 (Chester O.C. 2020). … Continue reading
In Notice 2020-51, 2020-29 I.R.B. __ (7/9/2020), the Internal Revenue Service has provided additional guidance on whether (and how) taxpayers may return or rollover required minimum distributions (RMDs) that were taken in 2020 but that were no longer required following … Continue reading
The Internal Revenue Service has published proposed regulations that include new life expectancy tables for minimum required distributions under I.R.C. § 401(a)(9), which applies to both qualified retirement plans and individual retirement accounts. “Updated Life Expectancy and Distribution Period Tables … Continue reading
This is an overview/explanation from Webcalculators: … Continue reading