Friday, July 14, 2017
Americans have an astounding $7.9 trillion invested in Individual Retirement Accounts (IRAs). If you happen to inherit one of these accounts, take the time to research the requirements for contributions and withdrawals. The tax rules surrounding inherited IRAs are complex and mistakes can be costly. Factors such as whether the account is a traditional IRA or Roth IRA will determine how long money can be maintained in the IRA on a tax-deferred basis (traditional) or a tax-free basis (Roth). IRS publication 590-A provides some basic information about traditional and Roth IRAs. IRS publication 590-B discusses requirements for asset withdrawals.
See Ashlea Ebeling, What To Do If You Inherit An IRA, Forbes, July 10, 2017.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.