Whether you “slow roll” or not the inheritance in 2025, any account income earned after the date-of-death belongs to the beneficiary and not on either the estate return or the decedent’s final personal return. The 1099 reporting of the account income will be in the decedent account owner’s name until the account registration is changed. But the executor/tax preparer should be passing that post-death 1099 interest to the beneficiary via the nominee 1099 process. I say “should” because if small $ they may decide to not pass it on.
More info is needed as to what type of bank account this is - taxable account, traditional IRA with RMD requirement for the beneficiary, Roth IRA, etc.?
Consider holding off on doing any/some of your planned 2025 Roth conversions until later in the year when you better understand the impact of this newly inherited account. Part of the 2025 income impact will be dependent on account type and what you plan to invest the $ in.
More info is needed as to what type of bank account this is - taxable account, traditional IRA with RMD requirement for the beneficiary, Roth IRA, etc.?
Consider holding off on doing any/some of your planned 2025 Roth conversions until later in the year when you better understand the impact of this newly inherited account. Part of the 2025 income impact will be dependent on account type and what you plan to invest the $ in.
Statistics: Posted by HomeStretch — Mon Nov 25, 2024 7:04 am