Sadly my nephew's in laws both passed away from covid within 5 days of each other. His wife inherited their IRA. My question is how do they deal with the tax situation of the IRA?
When they file her parents final tax return can they cash out the IRA and pay the taxes on that return and be done with any tax issues?
They can inherit under a million dollars tax free, correct? They are well under that with the house and IRA, but I know the tax on the IRA will have to be paid somehow.
Thanks for any help.
When they file her parents final tax return can they cash out the IRA and pay the taxes on that return and be done with any tax issues?
They can inherit under a million dollars tax free, correct? They are well under that with the house and IRA, but I know the tax on the IRA will have to be paid somehow.
Thanks for any help.