Inherited IRA

[jamessite]

If a child living in NY inherits an IRA from an 80-year-old parent who lives in Alabama for $50000, can the child use the $20000 pension deduction on NY State return even if the parent did not live in NY. I understand the child can use the $20000 exclusion if the parent was eligible to use it, but since the parent was not a NY State resident, can it still be used.

[IRonMaN]

Why would an Alabama resident be filing a NY return for IRA income?

Never mind, I read that wrong

[BobKamman]

The New York law, regulations and other guidance seem to be written by someone practicing English as a second language, but I will go out on a limb here and say that what they mean is that it qualifies as long as the decedent would have met all the other conditions, but not NY residency.  Otherwise they would be saying that someone who worked in NY for 40 years, then moved to Alabama three months before death, would lose the privilege of passing on his wealth to his beneficiaries.  

Is your client the only beneficiary?  Because there are some rules about the $20,000 being divided among all of them.  

[jamessite]

The child who inherited the IRA lives in NY