Discussion:Inherited Annuities

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Discussion Forum Index --> Advanced Tax Questions --> Inherited Annuities
Discussion Forum Index --> Tax Questions --> Inherited Annuities

DENNISTAX (talk|edits) said:

1 September 2009
Client inherited annuity from deceased mother's TOD brokerage account. Is there any way to avoid paying tax on the proceeds from "cashing in" the annuity?

AmirK (talk|edits) said:

1 September 2009
The short answer is no.

Kevinh5 (talk|edits) said:

1 September 2009
the long answer is to check for basis

DENNISTAX (talk|edits) said:

7 September 2009
OK. Is there any way to keep annuity without "cashing in"? I think not. Client is 50% beneficiary with his brother the beneficiary with 50%.

Southparkcpa (talk|edits) said:

7 September 2009
The term TOD should in fact be not needed here. The annuity has beneficiaries which TRUMP a standard TOD.

Are these qualified annuities (IRA)? If so, you have some options.

if not, Kevins point on basis is good however, the annuity company (assuming this is not a 1035) will know the basis.

Riley2 (talk|edits) said:

8 September 2009
Was there a designated beneficiary? Had the mother reached the age specfied as the annuity starting date? See IRC 72(s) for rules reqarding required pay-outs from a nonqualified annuity.

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