On 22 Aug 2003 01:05:01 GMT, "gonole1972" <ccaldwel[at]tampabay.rr.comwrote:

- quote -


To expand on this a bit, once the account has been retitled as above,
you can transfer the assets to another custodian if desired.
Occasionally I bump into a custodian with high fees, crummy investment
choices, unwieldy distribution options, etc. In those instances we
discuss more investor-friendly custodians.


-HW "Skip" Weldon
Columbia, SC

You and your brother are recipients of an "inherited IRA". You cannot move
an "inherited IRA" to an IRA in your name, although you and your brother
have complete control of the investments and withdrawals from the deceased
relative's IRA.

The IRA will be re-titled the -- [name your relative], deceased, for
benefit of [FBO], your name.

There is no penalties on the withdrawals since you will receive the funds
and the withdrawals due to the death of the IRA owner. However, any
withdrawals from the IRA will be taxed at your income tax rate.

If you intend to invest the IRA and do not intend to take all of the funds
out rather quickly, you may ask the custodian to divide the IRA into
separate shares for you and your brother, so each of you can use your own
life expectancy for minimum distributions, and mange the investments as each
of you wish over the long-term.

You must at least begin taking minimum distributions under the Single Life
Expectancy Table in the year following the year of death of the IRA owner.
i.e. If they died this year your first minimum distribution is in 2004.
You can find the table and instructions in Form 590, available at the IRA
Web site.

CCC

"Don" <djluka[at]yahoo.com> wrote in message
news:35ae678.0308201615.7d1673f9[at]posting.google.com...
- quote -

A relative recently died and named my brother and I beneficiaries of
his IRA. There wasn't a lot in the IRA and was wondering if there are
penalties for withdrawing the money now? Would I have to pay taxes on
it? Is it wiser to just open an account under my name and have the
money transferred?

Thanks,

Don