Are you inheriting an IRA or 401k?

| May 9, 2018 | Estate Plan

The good news about that is that generally, you will be able to treat that account as a “spousal rollover IRA if inheriting from your spouse. If the owner is not your spouse, you may be able to treat it as an Inherited IRA or “Stretch IRA,” which has some significant tax advantages to you.

The bad news, though, is that if the transfer is not done correctly, you can lose that tax advantage, and you may end up paying income tax on the entire account immediately. Therefore, before taking control of any IRA account (either a Traditional IRA or a Roth IRA) or a 401k, 403b, or other “qualified account,” you should consult with an investment professional. He or she can arrange for a “trustee-to-trustee transfer,” which will preserve the tax advantage.

If you have any questions about this or any other inheritance matter, please call one of the experienced estate planning attorneys at Creighton McLean & Shea PLC.

FindLaw Network

Get Started By Contacting Our Firm

How We Are Different

Excellence
We strive to become one of the most sought-after providers of legal services in the Metropolitan Detroit area.
Service
We endeavor to meet or exceed the expectations of our clients in all aspects of their legal representation.
Encouragement
We promote a collegial atmosphere in which all individuals are encouraged to learn, improve and excel and to become leaders in the legal, business and civic communities.
Community
We will pursue our belief that individuals with a sense of family and community and with interests outside the practice of law are better for it.
Creighton McLean & Shea PLC

14881 Farmington Road
| Livonia, MI 48154

Phone: 734-245-9289  Fax: 734-422-0461