Log in

View Full Version : Are you taxed on inheritance of IRA's and CD's if you cash them out


wilhaney
Mar 16, 2010, 01:29 PM
Are you taxed on inheritance of IRA's and CD's in Ca or buy the feds if you cash them out

ebaines
Mar 16, 2010, 02:31 PM
There is no inheritance tax in CA so when you inherit the IRA there is no tax due. However, over time as you make withdrawals from the inherited IRA you pay ordinary income tax on the them (unless it's a Roth).