ANSWERS: 3
  • They have to file it on their taxes. Once it is over a certain amount of money you have to. And with it being 200K they will not consider that a gift
  • only inheritance tax. email i.r.s. in OGDEN, UTAH FOR BETTER ANSWER.
  • NO, this is not inheritance. It is an IRA and you will have to pay taxes on this money as it was put away by your parents PRE-TAX so it is taxed when it comes out! If you have not received the money yet, I would definitely talk to a financial counselor, the bank, or an Enrolled Agent as to the best way to lessen the taxes (ie take it out over 5 years instead of 1).

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