Taxpayer asks:
My mom and I have a joint IRA. She is 73 years old and I am 45 years old. How do we figure out how much of it is taxable to each of us?
Taxgirl says:
Er, um. You can’t. There isn’t any such thing as a joint IRA. I think you need to call up your financial advisor and find out more about the account. It’s possible that you’re the beneficiary of your mom’s IRA – that’s a whole other animal. In that case, it’s taxable to your mom during lifetime and then it passes you at her death. But you can’t own an IRA together during her lifetime.
Before you go: be sure to read my disclaimer. Remember, I’m a lawyer and we love disclaimers.
If you have a question, here’s how to Ask The Taxgirl.
I always feel awkward when people ask these kinds of questions that are just wrong, but when you explain that they misunderstand their situation they just get pissed and tell me I don’t know what I am talking about.
Nice post. I know IRA distributions fully taxable. Many people confuse an individual retirement account in other types of investments. Generally, all distributions from the IRA is fully taxable. Even if you take everything you have contributed to Ira, the distribution is fully taxable.