Question by  koohekim (1)

If I gift my IRA to my 76-year-old mom, will there be taxes and penalties?

I'm 56 years old.


Answer by  eyeguy (3760)

Plain and simple yes. Unless you are 59.5 years old you will be forced to pay taxes on your gift. A Roth ira will not be subject to taxes however a traditional IRA will.


Answer by  brian7754 (243)

Yes, there will be taxes, because you would have to take an early distribution from your IRA, since you're younger than 70 1/2. There would be a 10% penalty, along with whatever taxes. Your mother may also have to declare income and pay income tax, but maybe not because of her age.

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