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Updated about 1 year ago on . Most recent reply presented by

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Peter Peter
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Inheriting a SDIRA that holds investment property

Peter Peter
Posted

I haven't found an answer to this specific question on BP or elsewhere online: if I die, and my SDIRA that holds investment property goes to my adult child, what are his/her options?  The account has to be drained in 10 years right?  Assuming he/she does not sell the property at the end of 10 years, at that point will taxes be owed on the property's appraised value?

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Dmitriy Fomichenko
#1 New Member Introductions Contributor
  • Solo 401k Expert
  • Anaheim Hills, CA
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Dmitriy Fomichenko
#1 New Member Introductions Contributor
  • Solo 401k Expert
  • Anaheim Hills, CA
Replied

The beneficiary would have to open an inherited self-directed IRA; the assets will be rolled over there. Yes, they will have 10 years to distribute. If they don't sell the property - it would have to be distributed from the IRA as "in-kind distribution". Distributions from IRA are taxable.

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