Reported 9 days ago
Inheriting an IRA comes with specific rules that must be followed to avoid tax penalties, especially as the tax deadline approaches. Beneficiaries can either open a separate inherited IRA or take a lump sum distribution, which may result in significant tax implications. Since 2020, a 10-year withdrawal rule has been implemented for non-spouse beneficiaries, requiring the full amount to be distributed within a decade, affecting tax obligations. Spousal beneficiaries have more flexibility regarding withdrawals, allowing them to either create a new inherited IRA or roll the account into their own.
Source: YAHOO