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    Inherited IRA

    Mother died in 2005 at the age of 62, son inherited her Traditional IRA, father is still living. Q1: Does the 10% penalty apply if the son cash in the IRA Q2: Must the son cash in the IRA(is there a time line) or are there other options Q3: Son cannot rollover IRA , right ?

    #2
    Inherited IRA

    There is no 10% penalty to son on inherited IRA
    IRA cannot be rolled over to sons IRA that is only for surviving spouse

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      #3
      That answers question 1 and 3. For question 2, the Son has three options. Take the distribution by the end of the year in which tax is paid but no 10% penalty, or leave the funds in the decedentís name and have the entire amount distributed to the Son within 5 years (again no 10% penalty, only tax), or leave the funds in the decedentís name and have the IRA begin making Required Minimum Distributions over the life expectancy of the beneficiary (the son).

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