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Income in Respect of a Decedent

Income the person earned but had not received by death, which is taxed when it is paid out.

What Income in Respect of a Decedent means in an estate

Income in respect of a decedent (IRD) is money the deceased was owed but had not yet received, such as a final paycheck, unpaid interest, or a traditional retirement account. Unlike most inherited assets, IRD does not get a stepped-up basis, so the person or estate that receives it owes income tax on it. Retirement accounts are the most common example.

Information current as of April 4, 2026

Settled Estate is not a law firm, and this content is for informational purposes only and does not constitute legal advice. Probate laws and procedures in your state can change. Consult with a qualified attorney for advice specific to your situation. Full disclaimer.