Beneficiary IRA income tax in Georgia
Hello. A client passed away, and left her IRA’s to her nephew in Georgia (age 36). Do you know how distributions will be taxed in Georgia? Thanks.
Hello. A client passed away, and left her IRA’s to her nephew in Georgia (age 36). Do you know how distributions will be taxed in Georgia? Thanks.
Permalink Submitted by Alan - IRA critic on Tue, 2018-12-11 00:11
Probably like ordinary income. There is a retirement income exclusion in GA, however the minimum age for that is 62. If client has any basis in her IRA from non deductible contributions reported on Form 8606, a pro rated portion of the beneficiary RMDs and other distributions would be non taxable. That data needs to be provided to the nephew if there is inherited basis.