TLDR/ How to avoid excess taxes on IRA payout?
Im trying to piece together bits of information I’ve learned over the last month so any clarification would be wonderful.
We had an uncle pass away and we are listed as the beneficiary for his retirement account. We have been told by his financial advisor to expect $115-150,000 AFTER taxes. However, some of this we would like to contribute to our own IRA as we’ve both been saving the minimum 15% for the last few years and we’re below where we’d like to be. The only debts we have are at 0% interest (car and honeymoon on cc, on track to pay off both before interest starts) so that’s not a priority for us.
My question is - since part of this is going to be going into our IRA, is there a way to transfer accounts without paying income taxes on it? I hate to pay bereavement taxes AND income taxes only to put it into an IRA and learn later that I could have done something differently. The amount we’d like to put in our IRA is, ideally, $50,000. However, this also puts us over the annual contribution limit - does that matter?
Will we be using the remainder for a down payment in a house and leave a buffer of around $20,000 for moving, furniture, miscellaneous house expenses having to do with the move and once we’re settled put the rest into emergency savings to rev that up.
And yes, we have a financial advisor but we can’t get in touch with him (out if office) before we have to meet with the advisor of the uncle.
Submitted January 17, 2019 at 07:52AM by elvra http://bit.ly/2CqIo9K
