Inheriting a Roth IRA

Hi,

The inheritance itself is not taxed in Sweden but since an IRA is considered a personal saving, you should pay tax on all capital incomes (dividend, interest, capital gains etc.) that arises on the IRA. You cannot avoid the capital taxes.

Kind regards

Daniel

Thank you,

For clarification...

The IRA is not in my name and all the capital income up until now has accrued within the account under my mothers ownership and tax liability. At the time of transfer it will hold a certain value, which in the US is seen as a tax free inheritance. If I turn it into an IRA with my name I understand that I will have to pay taxes on any forthcoming capital income.  Are you saying that I will have to pay Sweden taxes on the capital income that accrued to the account during the time it was owned by my mother? Or do you mean I will have to pay tax on the income from the time it is transferred to me?

Thanks

Hi,

It depends on what kind of capital income it is. If it a capital gain, the gain is calculated as selling price minus purchase price ie it means that increase in value during the time your mother owned the IRA will be taxed by you. Dividend and interest will only be taxed from the day you inherited the IRA.

Kind regards

Daniel