The recipient of an inherited IRA may or may not pay taxes depending on their situation. In general, if you inherit a Roth IRA, you're free of taxes. However, if you inherit a traditional IRA, any amount withdrawn is often subject to taxes. On the other hand, estates subject to the ...
Or if you take a lump-sum distribution of the Roth IRA, you’ll also enjoy a tax-free withdrawal as long as the five-year holding period on the account was met. If this rule was not met, any withdrawn earnings are taxable. Of course, there are other ways to treat the Roth IRA tha...