Form 706 Retirement accounts

[mactoolsix]

Client's wife passed away and he has a SEP IRA. Community property state (CA), thus I'm thinking 1/2 the SEP belongs to the deceased and is includable on the 706 - possibly Sch I.

Scanning the IRS index https://www.irs.gov/instructions/i706/ix01.html and the Form 706 instructions, I see nothing about a spouse's IRA account.

Any help appreciated.

[TaxGuyBill]

I think Publication 555 says that all IRAs are "separate property", which would include not being included on the 706.


Withdrawals from individual retirement arrangements (IRAs) and Coverdell Education Savings Accounts (ESAs). There are several kinds of individual retirement arrangements (IRAs). They are traditional IRAs (including SEP-IRAs), SIMPLE IRAs, and Roth IRAs. IRAs and ESAs by law are deemed to be separate property. Therefore, taxable IRA and ESA distributions are separate property, even if the funds in the account would otherwise be community property. These distributions are wholly taxable to the spouse (or registered domestic partner) whose name is on the account. That spouse (or registered domestic partner) is also liable for any penalties and additional taxes on the distributions.

https://www.irs.gov/publications/p555/ar02.html#en_US_201412_publink1000168770

[mactoolsix]

Bill - thank you!