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An inherited IRA is an individual retirement account (IRA) that is opened when someone inherits an IRA or employer-sponsored retirement plan after the original owner's death. The beneficiary of an inherited IRA cannot make contributions to the account, but they can take withdrawals from the account
Spouse beneficiaries. Spouses of IRA owners have the most flexibility when it comes to inherited IRAs. They can choose to treat the IRA as their own, in which case they will be subject to the same distribution rules as the original owner. This means they can take withdrawals as needed, without having to take required minimum distributions (RMDs). Or, they can choose to keep the IRA in their own name as an inherited IRA, in which case they will be subject to the 10-year rule.
Non-spouse beneficiaries. Non-spouse beneficiaries must take required minimum distributions (RMDs) from an inherited IRA, unless they are one of the following exceptions:
It is important to note that these are just the general rules for inherited IRAs. There are some other factors that may affect the distribution rules, such as the type of IRA (traditional or Roth) and whether the original IRA owner had begun taking RMDs. It is always best to consult with a financial advisor to determine the specific distribution rules that apply to your situation.
Here are some additional things to keep in mind about inherited IRAs:
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