Ira
Discover how IRAs work in estate planning. Learn about beneficiary designations, tax strategies, and ways to preserve retirement wealth for your heirs.
Do I have to pay taxes on an inherited IRA right away?
You typically don't have to pay taxes immediately on an inherited IRA, but the rules depend on your relationship to the original owner and the type of IRA. Spouses have the most flexibility and can often roll the IRA into their own account. Non-spouse beneficiaries usually must withdraw all funds within 10 years, though some distributions may be required along the way. Traditional IRAs are taxed as ordinary income when withdrawn, while inherited Roth IRAs are generally tax-free if the account was held for at least five years.
