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They can treat the inherited IRA as their own, or take distributions based on their life expectancy. These new rules do not apply to accounts inherited before 2020, or to Roth IRAs.
4. Take the tax break if you’re entitled to it. An inherited IRA may be taxable, depending on the type. If you inherit a Roth IRA, you’re free of taxes.
Inheriting an individual retirement account isn't like inheriting most other assets. With an inherited IRA, there are a lot of moving parts in terms of the type of IRA, the payout options, who the...
Inheriting an IRA isn't quite as simple as taking the money and going on your way. Since an IRA is a tax-advantaged vehicle, you'll have to strategize how to maximize the value of the account ...
To do so, the IRA creates a trust, then names it as the beneficiary of the IRA. The result is that the trust receives any funds remaining in the IRA when the owner dies.
Open their own IRA and rollover the inherited account. If the original account owner died after their required beginning date, the spouse beneficiary has these options:
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