Inherited IRAs: Tips You Need to Know

Inherited IRAsRetirement planning is complicated. It’s a personal and situational endeavor with plenty of possible pitfalls in the way of success. Inherited IRA rules vary depending on the beneficiary type: Non-Spouse Beneficiaries, Spouse, and a Trust Beneficiary.

As a beneficiary of an IRA, you may find yourself with many questions and concerns. The rules are different for a non-spouse beneficiary than they are for a spouse or trust beneficiary. Arm yourself with working knowledge of some of the Do’s and Don’ts, and work with a competent, educated financial advisor to keep more of your assets and lose less to taxes and unnecessary fees.

Non-Spouse Beneficiaries

Only move the inherited funds as a direct transfer. Inherited IRA funds must be moved via a trustee-to-trustee transfer; NOT a 60-day rollover. In a direct transfer, the beneficiary does not have use or control of the IRA funds during the transfer.

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