If you’re the recent beneficiary of a loved one’s retirement assets, you may be unaware of an income tax deduction available to you called the income in respect of a decedent (IRD) deduction.
When certain inherited assets, such as IRAs, 401(k)s, and other retirement accounts are hit with both federal estate and income tax, this deduction can help offset the impact.
Your IRD deduction should be included on your 1099-R form, but don’t expect your CPA to be the one to find it, as too often, this deduction is overlooked. Taking the time to claim it can help reduce your tax bill and keep more of your inheritance in your hands.
Click here to download “Calculating an IRD Deduction in 5 Easy Steps.”
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