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Posted on Monday, November 17th, 2014 by Peter Klenk

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.

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.

If you have questions about probate in Bucks County, Pennsylvania, feel free to contact our office for a free consultation.

Wills, Trusts and Estates, It’s all we do!

Peter Klenk, Esq

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