retirement






 

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.

 
+7

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.

 
+6

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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