A loved one passed away 2 years ago and she had 4 separate IRA accounts where her 5 adult children were listed as beneficiaries on each account. With the recent economic situation gripping this country the 5 children wish to cash out all 4 accounts and divide the sum 5 ways. If 1 family wishes to take their share as a lump sum payment, What penalties will they pay if the family total salary is $80k. prior to the IRA account.

Thank You,
M.C. & S.C.