Skip to Content

We are a Veteran Owned Business, providing 20% discounts for Veterans, First Responders, Elementary and High School teachers. We remain open during the shutdown period, so please contact us to set up a phone or Zoom meeting. Taking care of you and your family, It's What We Do!

Klenk Law

PA Inheritance Tax and the IRA – What You Need to Understand

Posted on Mon Nov 17, 2014, on Probate and Estate Administration

From our “Ask a Question” Mailbag: PA Inheritance Tax and the IRA

Most Recently Updated July 8, 2018.

“My Father died at age 58, is his IRA subject to the Pennsylvania Inheritance Tax?”

Probate-Fees

PA Inheritance Tax and the IRA – What Are Tax Implications

PA Inheritance Tax and the IRA – Is There an Effect?

With one exception, if a Pennsylvania resident dies before reaching the age 59½ his IRA is not subject to the Pennsylvania Inheritance Tax. This is because of a Pennsylvania rule stating that there will be no tax levied on the value of any retirement plan for which the deceased would have been penalized had he removed the funds during his lifetime.

When are IRAs subject to a Penalty?

IRAs are subject to penalty if funds are removed prior to the owner reaching age 59½, so they are not subject to the Pennsylvania Inheritance Tax if the deceased died prior to reaching age 59½.

Note, if the deceased was disabled at the time of his death, then the penalty against early removal for IRAs is waived, and with it, the IRA becomes subject to the Pennsylvania Inheritance Tax.

More Probate Questions?

The effect of the PA Inheritance Tax on an IRA is only part of the overall probate process. By all means, if you wish to learn more, please read my more detailed article, The Probate Process All You Need to Know.

In Conclusion: PA Inheritance Tax and the IRA

I hope that this article was helpful in explaining the effect of the PA Inheritance Tax on the IRA. Further, I included links to even more detailed information on my website. Therefore, please contact me and let me know how I did. Certainly, your comments and questions are welcome!

Let our Probate Lawyers help walk you through what can be a confusing process. To begin with, call to speak to one of our experienced Probate Attorneys.  By all means, our lawyers are ready to answer your questions. In fact, feel free to contact our office for a free consultation. Ultimately our goal is to make the process as painless as possible!

Wills, Trusts, Probate, and Estate Litigation, It’s All We Do

 

Tags:

Bucks County, Inheritance Tax, Pennsylvania, Probate, Probate Attorney, Probate Lawyer

What Our clients are saying

Klenk Law Logo
Stars

I'm totally satisfied with Klenk Law. Peter has a great legal mind with the personality of the guy next door.

Klenk Law Logo
Stars

Answered my question quickly and referred me to a colleague that could handle my problem

Klenk Law Logo
Stars

Peter explained a complex subject very clearly, helped us to decide the best approach to managing our estate and then made it very easy for us to execute the required documents. He will be a valuable resource for years to come and clearly has a great understanding of estate law that will lead to innovative solutions for us. I would unhesitatingly recommend him for estate planning.

Klenk Law Logo
Stars

Everything about my experience was a 10+! Peter and his staff made what I thought would be a difficult process easy and understandable. Every detail was handled correctly. No other firm could possibly do better than Klenk Law!

Klenk Law Logo
Stars

AWESOME LAWYER! Peter Klenk is an exceptional attorney and a very nice person! Today I spoke with Peter about estate planning and was impressed with by his professionalism, cordiality, and attention to detail. I highly recommend Klenk Law for probates, wills, trusts, and other issues germane to estate planning!

Let us put our expertise to work for you.

Free consultation within 24 hours.