| I received a beneficiary IRA a few years ago. There are special rules for beneficiary IRAs, which are rather complicated. He will owe taxes on all disbursals. It cannot be directly rolled over into his own IRA, it must remain a beneficiary IRA, or taxes will be immediately due. I know that I am actually required to take out a portion of mine every year. The amount is based upon my life expectancy. When I received the b-IRA I was 47, and according to the actuarial tables that they used, they determined that I had another 47 years left (crossing fingers that they are correct!). I need to take a minimum of 1/47th out each year, and it does count as taxable income that year. If your son wants to change the account in any way he needs to be VERY careful. |
Here is a link that might be useful: Beneficiary IRA rules
| Below is another very good article on beneficiary IRAs |
Here is a link that might be useful: Bankrate.com article
