When a person dies is his estate liable for income taxes on a IRA ( USA)?
<p>Is the deceaseds' estate liable for USA income tax on an IRA ? Or is the IRA paid out to designated beneficiaries which then makes them liable for the taxes ? Thinking of a modest amount , well under one million dollars.</p>

<blockquote>
  <p>Is the deceaseds' estate liable for USA income tax on an IRA? Or is
  the IRA paid out to designated beneficiaries which then makes them
  liable for the taxes?</p>
</blockquote>

<p>Distributions from an IRA are called "income in respect of a decedent" and are taxable ordinary income to whomever first receives the distribution from the IRA, in the year it is received, to the same extent that it would have been income if it had been received by the decedent prior to death.</p>

united-states liability tax-law estate-planning