Reported 6 months ago
When siblings inherit an IRA from their parents, they have the option to transfer the IRA into an inherited IRA, either jointly or individually. This rollover must occur by December 31 of the year of inheritance, and the siblings have 10 years to withdraw and pay taxes on the money. They can also choose to withdraw the entire value as a lump sum and divide the assets among themselves. Additionally, minor children can transfer the IRA into an inherited IRA, but they must follow the 10-year rule once they reach the age of majority. Seeking advice from a financial advisor is recommended to navigate the tax implications and rules surrounding inherited IRAs.
Source: YAHOO