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  1. #1
    Join Date
    Aug 2006
    Posts
    1

    Default Taxes and Penalties for a Beneficary IRA

    Arkansas.

    My Mother passed away 2 years ago and left an IRA to be divided amoung 3 children. I kept my portion as an beneficary IRA and took two mandatory withdrawls. Today I closed out the account and am using the money to pay debt. Will I have to pay an early withdrawl penality because I am under 59 1/2 or am i exempt because this is a beneficary IRA ? My Mom had begun receiving distrubtions from her account prior to her death. My understanding was that I would have to pay taxes as I would on income, but no penality since this is not "my" IRA.

    Thank you

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Taxes and Penalties for a Beneficary IRA

    There should not be penalties on withdrawals from an inherited IRA.

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