Inherited IRA - Or, at least, inheriting an IRA

[Jay_Z]

I will be inheriting an IRA (one of 6 beneficiaries) - father passed away Oct 2018, money is currently in IRA but will (finally) be distributed in Dec 2020 or Jan 2021.

My share, approx 15k. I am 47, father was 85 at time of death, taking monthly distributions.

Based on the timeframe since death, what are the options for this? I can take distribution and pay taxes on this or can I still do an inherited IRA? What's are the options and benefits/ramifications of each?

Thanks!!

 

[Taxing Matters]

I will be inheriting an IRA (one of 6 beneficiaries) - father passed away Oct 2018, money is currently in IRA but will (finally) be distributed in Dec 2020 or Jan 2021.

My share, approx 15k. I am 47, father was 85 at time of death, taking monthly distributions.

Based on the timeframe since death, what are the options for this? I can take distribution and pay taxes on this or can I still do an inherited IRA? What's are the options and benefits/ramifications of each?

Thanks!!

If you were a beneficiary of the IRA when he died and remain a beneficiary now then the IRA would be an inherited IRA. However, with an inherited IRA you cannot do a roll over of the account into your own IRA. If the money is distributed to you from the IRA then at that time of distribution you will have taxable income, assuming that this is a traditional IRA. See IRS Publication 590-B.