Understanding the IRD Deduction That Inherited IRA Beneficiaries—And Advisors—Often Miss
Aug 6, 2015
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By Michael Kitces, MSFS, MTAX, CFP, CLU, ChFC
The income in respect of decedent (IRD) deduction can cut the income tax bill on an inherited IRA by as much as 40%. Make sure your clients are capitalizing on the deduction by getting familiar with the rules surrounding IRD, in what situations (and to what types of accounts) it applies, how to track it, and how to claim it.