I’m inheriting a non-spouse traditional IRA beneficiary, what should I know?

If you inherit a Traditional IRA from someone other than your spouse, the IRA assets will remain tax-deferred until you distribute them. It is important to note that this tax-deferral does not last forever, as you must take required minimum distributions (RMDs) from the inherited IRAs and failure to do so can result in negative tax consequences including penalties. 

Your RMD amount is determined by several factors, including your age, and the distribution option that applies to your inherited IRA.

See these articles to learn more about inheriting a non-spouse traditional IRA before and after the owner is required to take RMDs.

Was this article helpful?
Have more questions? Submit a request