* Qualified charitable distributions can come from most types of IRAs, including rollover IRAs and inherited IRAs
, other than "ongoing" simplified employee pension (SEP) IRAs or savings incentive match for employees (SIMPLE) IRAs.
If your choices are limited by a plan, you may have the ability to transfer the plan funds to an IRA established in the deceased IRA owner's or plan participant's name--the rules that apply to inherited IRAs
would apply to the transferred funds.
Supreme Court held that inherited IRAs
are not "retirement funds" that would otherwise be exempt from most creditors' claims in bankruptcy.
* Curtail "stretching" of inherited IRAs
by a non-spouse beneficiary after the death of an IRA owner
To manage inherited IRAs
. The rules around IRAs that pass by inheritance from one generation to another can be convoluted, particularly with regard to taxation, Lovell says.
A recent Supreme Court case clarified that inherited IRAs
are not afforded any protection under federal bankruptcy laws.
There are many nuances with Inherited IRAs
, including if the beneficiary is a spouse or non-spouse, and how long the money has been in the account.
Next, it discusses the legal history of both non-inherited and inherited IRAs
leading up to the Clark decision.
It suggests how taxpayers and their advisers may nonetheless achieve a degree of asset protection from creditors for inherited IRAs
. Specifically, with either of two types of "see-through" trusts, an IRA owner may designate an individual as the trust's beneficiary to receive IRA distributions.
The current decision draws a distinction between self-funded and inherited IRAs
, ruling that the latter are not "retirement funds" as defined by Section 522(b)(3)(C) of the U.S.C., so they cannot be exempted during a bankruptcy.
With the government discussing the elimination of inherited IRAs
, the elimination of stepped-up basis, and reductions in itemized deductions, wouldn't families benefit from a tax reduction strategy?