Spouses have more flexibility in how to handle an inherited IRA. For one, they can roll over the IRA, or a part of the IRA, into their own existing individual retirement accounts. The advantage of this rollover is the ability to deferrequired minimum distributions (RMDs)of the funds until ...
Whether the original account owner had to take required minimum distributions (RMDs) can also influence what you can and should do with the IRA. Should you try to minimize taxes or maximize cash distribution from the account? These are a few of the complex questions that an inherited IRA pres...
Option #1: Open an Inherited IRA: Life expectancy method Option #2: Open an Inherited IRA: 10-year method Option #3: Lump sum distribution Traditional IRA: Non-spouse inherits after RMD date If the account holder died after their required beginning date to start taking RMDs, these are your...
Traditional beneficiary IRA. Any distributions are generally taxable, but the 10% penalty for early withdrawals before age 59 1/2 doesn't apply. In addition, the timing of RMDs is based on whether your spouse had already begun taking them at the time of death (to be specific, if your spo...
Again, these are required minimum distributions, commonly referred to as RMDs. If you only take RMDs from the beneficiary IRA for 48.5 years, how much money would you actually end up withdrawing? Assuming you could average a 6% rate of return over those 48.5 years, you would end up withdraw...
to one of several options when beneficiaries take distributions from aninherited IRAif the death of the account holder occurred before 2020. Whether it's a traditional IRA or a Roth IRA, heirs are required to take annual allocations from the account, known asrequired minimum distributions (RMDs)...