I Inherited an IRA. Now What?

Here’s what you should consider if you inherit money in either a traditional or a Roth IRA.

Woman with laptop working in home office.
(Image credit: Getty Images)

You’ve inherited an individual retirement account, or IRA. Now what?

Unfortunately, you cannot leave the money in the original IRA opened by the deceased person. There are several ways you can receive the funds after inheriting either a traditional or Roth IRA, but your options will be narrowed by a few factors. Failure to handle an inherited IRA properly can lead to a significant penalty from the IRS.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Editorial Intern, Kiplinger.com