I just inherited a Traditional IRA. Now what?

First off, if you’re reading this for yourself, I’m sorry for your loss. Inheriting money, though usually a financial blessing, is a difficult time. You’re grateful for what your loved one has left you, but now you’re not sure what to do. Let’s break this down so you understand what needs to happen.

First of all, if you’re not sure what an IRA is, check out our IRA primer here. If you have a good handle on what they are, let’s jump in.

Determining what the withdrawal rules are for the IRA you just inherited can feel like trying to untangle knotted Christmas lights. Multiple factors, including when the owner passed away, whether or not the owner was the original owner, what your relationship with that owner was, and/or your age in relation to the owner, all determine which set of rules you have to follow.   

We have attached two resources below, one for cases where the owner passed away on January 1, 2020 or later and one for when the owner passed away on December 31, 2019 or earlier. I believe walking through the applicable flow chart is the simplest way to cut through all the noise and walk away with a good understanding of what rules apply to you.

If you still have questions or would like to consult with one of our advisors, don’t hesitate to reach out.