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Ask Dave

IRA Left To Us...Is It Taxed?

Rob will have to pay taxes on the IRA he has inherited if he decides to cash it out.

QUESTION: Rob wants to know what he can do with the money he has inherited from an IRA.  Is it taxable?

ANSWER: It’s all taxable, so when you cash it out you will have to pay your income tax rate on it.  It can only be sheltered from taxes if it was your spouse’s IRA. 

After that, follow the baby steps.