Income Taxes on Financial Inheritance for Non-Spousal Beneficiaries

Written By: Lyndol Anderson | West Texas Senior Solutions This general information gives basic details on options for settling inherited financial accounts. The ramifications to a beneficiary’s personal estate and income taxes will be discussed. The most common types of inherited accounts are listed in order of highest to lowest potential income tax burden. 1) Tax Qualified Accounts: IRA’s, 401(k)’s, 403(b)’s, etc. 2) Tax Deferred Non-Qualified Annuities 3) Bank Accounts: CD’s, Money Markets, Checking Accounts, etc. 4) Life Insurance 1-a) IRA Accounts: The funds in...
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