If you have inherited — or anticipate that you will inherit — an Individual Retirement Account (IRA), understanding your options for what to do when those assets become yours can be complicated. Your unique circumstances, tax strategy and relationship to the original owner of the IRA can impact how you move forward.

For spousal beneficiaries, your options include:

• Keep as an inherited account
• Delay beginning distributions until the owner would have turned 72
• Take distributions based on your life expectancy
• Follow the 10-year rule
• Roll over the account into their own IRA

For non-spouses, eligible beneficiaries include a minor child of the IRA owner, a disabled or chronically ill person connected to the IRA owner or a person no more than 10 years younger than the IRA owner. In most cases, these beneficiaries must withdraw the assets within 10 years.

As you can see, it is critical that you talk with a financial professional before you take any action when inheriting IRA.

Getting started is as easy as scheduling a conversation.

 

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

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