The rules for inherited IRAs vary depending on whether you are the spouse of the deceased or someone else. The spouse is allowed to roll over the decedent’s IRA into his or her own IRA. After combining the inherited IRA with your own IRA, normal IRA rules will apply.
Everyone other than the spouse treats the inherited IRA as a beneficiary IRA. You cannot make any new contributions to the account, and you must take a RMD (Required Minimum Distribution) over your lifetime.
IRS rules that apply to inherited IRAs can be complex and difficult to sort through. Your age, the decedent’s age, your relationship to the decedent, how long the IRA has been in existence and the type of IRA are among the factors that determine how your inherited IRA should be treated. It is highly recommended that you seek the guidance of a professional tax advisor when determining how to treat an inherited IRA.
401k Rollover Frequently Asked Questions
Here are some answer to your frequently asked questions regarding 401k rollovers.
- What will the stock market do tomorrow, next month, or next year?
- How do I know what my investment return is?
- Why is my 401k such an important benefit?
- How important are taxes when investing?
- What is a 401K Rollover?
- Is there such a thing as a “free lunch” in investing?
- What is an IRA Rollover?
- What is an investment policy statement?
- What do I do after I inherit an IRA?
- What are Treasury Inflation Protected Securities (TIPS)?
- How much risk should I be taking in my IRA rollover and other retirement assets?
401k Rollover Section Menu:
- 401k Rollovers
- Sample Fee Disclosure – Detailed Fee Disclosure
- Investor Resources – Investment Management Process – 401k Rollover Errors
- Common Investing Mistakes – No Guarantees of Continuance – Not All Investors are Experts – Nobody is Perfect – It’s All About Discipline
- 401k Rollover Options – Direct Rollover IRA – Direct Rollover to Your Current Employer’s Retirement Plan – Lump Sum Distribution
- Glossary of Investment Terminology
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