Income in respect of a decedent

Income in respect of a decedent.

Any income your beneficiary receives after your death that would have gone to you if you were still alive is described as income in respect of a decedent.

One example is the income your beneficiary gets as a minimum required distribution from your 401(k) or IRA. In this case, your beneficiary pays tax on that income at his or her ordinary rate, as you would have.

References in periodicals archive ?
The determination of income in respect of a decedent (IRD) can have significant estate tax and income tax implications for the decedent's estate and successor in interest.
A category of assets known as income in respect of a decedent (IRD) does not.
Income in respect of a decedent (IRD) is income the decedent earned before his or her death that is received after death.
This quandary is known as income in respect of a decedent (IRD)--income to which the decedent was entitled, but due to his or her death was not includable in his or her taxable income.
This should include familiarity with income in respect of a decedent (IRD).
IRC section 691, which covers income in respect of a decedent (IRD), requires that, upon distribution, some items of income must be reported on both Form 1041 (or on the tax return of the beneficiary receiving the income) and Form 706 as a taxable asset of the estate.
Advisers focused on private clients commonly overlook planning for the income and estate taxes on income in respect of a decedent (IRD).
Income in respect of a decedent (IRD) is not specifically defined in the Internal Revenue Code.
If the shares distributed from the qualified plan are not sold during the life of the individual, the amount of the NUA will be treated as income in respect of a decedent (IRD).
Income in respect of a decedent (IRE)) generally consists of items of gross income a decedent was entitled to at death that, because of the decedent's method of accounting, were not included in the final individual return; see Pegs.
This is an example of an income in respect of a decedent item (IRD).
The Service held that the transfer to the trust will not be treated as a sale or disposition of the IRA, nor give rise to income recognition under the Code's rules for income in respect of a decedent.