Can state/federal taxes be paid from an IRA account?

Asked 11 months ago - Seattle, WA

I'm Pro'Se and executor of an estate. Recently tried to access funds to pay taxes through court order because parties agreed to pay portion of taxes from there share of will proceeds. However bank refuses access to funds. Now 2-3 months later I get a letter from the bank saying that the IRS controls IRA accounts and they cannot be used for taxes. I called my CPA and he pretty much told me the same thing. Are they correct?

Attorney answers (3)

  1. Justin Eric Elder

    Pro

    Contributor Level 16

    2

    Lawyers agree

    1

    Answered . IRA's will often have a death beneficiary, meaning they pass outside of probate. That might be the source of your problem.

    This posting is for informational purposes only. It is not legal advice, nor does it establish an attorney-client... more
  2. John P Corrigan

    Contributor Level 19

    2

    Lawyers agree

    Answered . IRS does not control IRA accounts.....the owner controls an IRA account and if the owner/decedent designated who the beneficiary is of such account then you , as executor, can only access the funds if the named beneficiary per bank records is the Estate of the decedent. If any other party is named as beneficiary then you have no authority whatsoever to access such funds. So what are the missing facts here in your scenario?

    My answer is not intended to be giving legal advice and this topic can be a complex area where the advice of a... more
  3. Jonathan Stuart Frank

    Contributor Level 13

    2

    Lawyers agree

    Answered . To a certain extent, they are right. If there is one or more named beneficiaries surviving, then you as Executor do not have access to the IRAs. Only if the Estate is named or if all of the named beneficiaries have predeceased would you as executor have access to these funds.

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