Inherited IRAs are treated the same, whether they are traditional IRAs orRoth IRAs. The tax treatment of withdrawals does vary—consistent with the type of IRA (funded with pre-tax dollars, like the traditional type, or post-tax dollars, like with the Roth). Inherited IRAs: Rules for Spouse...
The IRS providesfurther rules around your options, including what you can do with aRoth IRA, where the rules differ substantially from traditional IRAs. 2. Choose when to take your money If you’ve inherited an IRA, you’ll need to take action to avoid running afoul of IRS rules. ...
The required minimum distribution rules hinge on when the original account owner died, whether they already started RMDs and the type of beneficiary. Inheriting anindividual retirement accountcan be a welcome surprise. But the gift comes withmandatory withdrawalsfor heirs and following the rules can...
‘A spouse beneficiary, unlike a non-spouse beneficiary, can continue to use the old, pre-SECURE Act rules, either stretching out the RMDs from the account over his or her remaining lifetime or, alternatively, rolling over the inherited IRA into their own IRA instead”, McGovern said. What...