One of the most common assets to inherit is an individual retirement account (IRA), especially those rolled over from prior retirement plans. Image: Sanjeev Bhatia, MD; David B. Mandell, JD, MBA; and Jason O’Dell, MS, CWMTypes of inherited IRAsAn inherited IRA is an individual retirement account that is passed down to a beneficiary after the original account holder's death. This beneficiary can be a spouse, a child, a grandchild or any other person or entity designated by the original account holder. When you inherit a traditional inherited IRA, you will generally need to pay taxes on the distributions you take from the account, just as the original account holder would have. Roth inherited IRA: If the original account holder had a Roth IRA, you can inherit a Roth inherited IRA.

Source: New York Times December 02, 2023 02:38 UTC