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. ...
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 IRA can be re-registered as an inherited IRA in your name. Whether or not this makes sense for you depends on the type of IRA you have inherited (traditional or Roth), your decedent spouse's age, and the RMD rules.
Another type of "5-year rule" applies when you convert a traditional IRA to a Roth IRA. You'll need to wait five years to do with with no penalties. Each conversion has its own five-year period, but IRS rules stipulate the oldest conversions are withdrawn first. The order of withdrawals...
Patti S Spencer
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However, the SECURE Act abolished the stretch IRA for mostbeneficiaries. Now, inherited IRA balances generally must be depleted within 10 years.4 The SECURE Act and Inherited IRAs Passed at the end of 2019, the SECURE Act changed the game. Here’s a basic rundown of the rules for inherited...
Although the RMD rules apply toRoth 401(k)accounts, they do not apply toRoth IRAs.3 Required Beginning Dates (RBDs) and Inherited Accounts Retirement account holders specifybeneficiariesfor their accounts in the event of their death. In these cases, the required beginning date and any existing ...