Inherited IRA

 

When a beneficiary inherits an IRA account, they have a few options to consider when it comes to what to do with the inherited assets.  An inherited IRA, also sometimes called a beneficiary IRA, is an account that can be opened by a beneficiary or beneficiaries following the original IRA owner’s death.  Inherited IRAs allow the beneficiary to receive the same tax-deferred growth as the original owner.

 

Rules

 

  • Required minimum distribution (RMD) rules – this is the minimum amount that must be distributed to beneficiaries from inherited individual retirement accounts and is based on the life expectancy of the beneficiary, as well as other factors.
  • Inherited IRAs must be re-titled and must include the fact that the account is inherited and include the name of the deceased. Spouses can roll inherited IRAs into their own existing IRA accounts without penalty.
  • Beneficiaries have nine months from the date of death to make certain decisions about inherited IRAs.
  • Rules for inherited IRA taxes depend on the type of IRA you inherit, whether you are a spouse or non-spouse beneficiary, whether you are the sole beneficiary or are sharing the inheritance, and other factors.  It is best to talk to a qualified tax adviser for more information about inherited IRA taxes.
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    Contact Us:

     

    To find out more about opening an inherited IRA, either call our office at
    (855) 846-ACAP, fill out our brief contact form or email us at [email protected].