If a traditional IRA is subject to both estate and income taxes, a withdrawal by the heir constitutes income in respect of a decedent IRD).

Question

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Income in Respect of a Decedent (IRD) refers to income that was owed to the decedent at the time of their death but had not yet been received, and thus is taxable to the estate or the recipient. Withdrawals from a traditional IRA by an heir are considered IRD because the decedent had not yet paid income tax on those funds.

If a Traditional IRA Is Subject to Both Estate and Income