An Inherited IRA is an account that is created when a beneficiary inherits an IRA or employer sponsored retirement account after the owner’s death.  The funds can remain tax deferred and, in most cases, can be withdrawn anytime without penalty. 

A beneficiary is required to liquidate the funds from the account within ten years following the death of the owner.  There are some exceptions to this rule so you should contact your tax advisor to confirm your options.

Benefits of an Inherited IRA

Distributions spread out over ten years  — This allows you to take smaller distributions over 10 years which can allow to spread out your tax liability over multiple years.  You can set-up monthly or annual distributions including your Required Minimum Distributions (RMDs) if you are required to take them.

Tax-deferred growth  — If you do not take a lump-sum distribution, you can allow your assets to grow tax-deferred until you withdraw the funds.

Schedule a Meeting to Learn About Inherited IRA Accounts

If you are looking to create income for your retirement years, contact Safe Harbor to learn more. We offer a complimentary consultation to review your existing retirement plans and can provide guidance on the right IRA Account solution that will provide the money you need to live comfortably in your golden years. Contact us here or call at 614-760-0670 to schedule your initial consultation or to learn more about Inherited IRA accounts.