The family member passed away and I was in the will to get the money in the said IRA I have the IRA number and it is at fidelity. What steps do I have to take in order to cash out the money. what fees may I have to pay if I with draw the money? Any info helps I have no idea where to even start on this subject.
Answer by Mr Placid
If this was in the will, then your first step is to probate the will. Nothing can happen until probate is initiated.
But before you do that, check with Fidelity to see if perhaps this family member designated a beneficiary for this IRA. Designating a beneficiary is distinct from naming someone in a will. If there is a beneficiary designation on file with Fidelity, then the beneficiary is entitled to the IRA without the need for probate.
Answer by someone
IRA do NOT pass through probate.
You will be given three options
1. Take the full amount and pay Federal and State Taxes immediately
2. Roll it over into your own IRA
3. Take a monthly check and only pay at tax time on the year's withdrawals
All you need is the Account number and the Death Certificate
Answer by RetirementGuru
If you're a listed beneficiary, call Fidelity to request the paperwork you'll need, which will probably consist of a new account application, and a certified copy of the death certificate.
IRAs with designated beneficiaries bypass the will and, accordingly, avoid probate. If you're a designated beneficiary, you'll establish a beneficiary/inherited IRA account, for your share, in the name of the decedent with you as beneficiary, and name your own beneficiaries. The rollover option is NOT available to non-spouse beneficiaries. Once established, your share can be transferred to your account.
Annual required minimum distributions (RMDs) must begin by the year after the IRA owner's death, based on your life expectancy, reduced by "1" each year. Of course, you can always withdraw more. The withdrawals will be taxable to the extent the would have been taxable to the decedent. The IRS 10% early withdrawal penalty is waived.
Hope that helps.
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Orignal From: I inherited a IRA from a family member who passed away, What do I have to do to claim the money?
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