Tax Law (Questions About Taxes)/DCG&T IRA Beneficiary

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Question
Hello! Thank you for reviewing my question.

My 62-year old mother is in the process of inheriting two IRAs from my dad who recently passed away, one of which is an IRA he inherited from his parents. One is valued at about $20,000 and the other at about $25,000. Each IRA is presently invested in securities.

Please advise me how the IRAs should be titled once my mother has possession of their assets. I have tried researching this independently and have read that the way an IRA is titled can impact both the rights of the beneficiary and tax consequences. We have asked the representative handling these accounts, but he was not at all clear about how he intended to retitle them, and didn't seem to know much about tax consequences, mandatory withdrawals, etc.

Therefore, I am seeking your advice. Thank you for any help you can provide.

Answer
Alex,

Thanks for your question.

Since it is an IRA inherited from a spouse, she can:
1. Treat it as her own by designating herself as the account owner. This will not change the name of the account.
2. Treat is as her own by rolling it over to her own IRA.
3. Treat herself as the beneficiary rather than treating is as her own.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA

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I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

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The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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