any income realized from a gift or inheritance is considered income to the beneficiary—most notably rents, interest, and dividends. In addition, most scholarships, fellowships, student loans, and other forms of financial aid for education are not included in gross income, perhaps to equalize the...
This change in the effective date, along with the provision of the proposed regulations that allows an IRA beneficiary to take the decedent's date-of-death RMD before the extended due date of the beneficiary's return for the year of the decedent's death, prevented many heirs from being ...
While this scenario is highly unlikely, there are some smart decisions that you can make to avoid future tax consequences. One poor decision that investors seem to frequently make is the naming of "payable to my estate" as thebeneficiaryof a contractual agreement, such as an individual retiremen...
Parents and guardians can contribute up to $2,000 per year, per beneficiary (no earned income or compensation limits apply). ESA contributions are not tax deductible, but if the funds are withdrawn to pay qualified education expenses, the earnings on the ESA funds are taken tax-free. ...
Withdraw funds as abeneficiary Take a qualified reservist distribution—a distribution made from a retirement account to a military reservist or member of the National Guard called to active duty If you're taking an early withdrawal from an employer-sponsored plan, you avoid the penalty if you're...