IRA's when can my daughter start collecting?

Question

She is my sole beneficiary. When I die, can she start taking distributions immediately or must she be 70 years old??

Answer 1

Read about tax on inheritances

http://taxipay.blogspot.com/2008/02/tax-...

Answer 2

to sum it up, she'll have 2 choices.

1-take the money, she will owe regular income tax on it since that money has never yet been taxed. If she is under 59 1/2 then she won't have to pay the 10% penalty (as another answerer noted)

2-adopt it as her own IRA and continue to let it grow tax-deferred until her own retirement time (age 59 1/2 or later). At that time, whatever she uses each year from it she will have to pay regular income tax on.

**If she decides to keep it as her own IRA and then takes money out before 59 1/2 then she will have to pay regular income tax plus the 10% penalty

Answer 3

She can pull the money at any time.  There won't be any penalty if she's under age 59 1/2 since it's an inherited IRA however all distributions are taxed as ordinary income.

Answer 4

age 59 1/2 if she rolls it over into an IRA for herself, which is strongly recommended

she can start taking distributions at any age as beneficiary without having to pay penalty, but will be taxed on it as ordinary income as collected