Estate Tax on Roth IRA

[tony123]

What is the name of your state (only U.S. law)? Maryland

My understanding is that beneficiary of Roth IRA are not required to hand out income tax on inherited Roth IRA regardless of the amount of Roth IRA. Please correct me if I'm wrong.

For Roth IRA that in all likelihood will be no more than $100,000, how does the estate tax get assessed in the eye of federal and state (Maryland) tax collectors?

I think even if they revive the estate tax, it's highly unlikely that the Feds will ask for their hand-outs in the name of estate tax for this amount of IRA and likewise for the state of Maryland tax collector. The reason being to my understanding Maryland is currently following 2009 Federal estate tax exemption amount of one million dollars.

Please share your knowledge on this issue. I don't think estate tax for the beneficiary will be assessed for amount expected to be no more than $100,000 for both federal and state of Maryland, but if anyone knows better, please advise. Thanks a million!

(Yes, I am aware that Maryland assessed both inheritance tax and estate tax. Will that incur any handout payments for Maryland tax man?)

 

[FlyingRon]

Unless the total estate exceeds a million, there is no Maryland (or Federal) estate tax due (under the current law).

We can't venture a guess on whether Maryland will change the law or what the Feds will due over the long haul.

If the inheritance passes to a descendent, sibling, parent or grandparent, there's no Maryland inheritance tax. There's no federal inheritance tax at all.