What is an inherited IRA?

An inherited IRA—also known as a beneficiary IRA—is an individual retirement account with tax advantages that’s left to one or more beneficiaries when the original owner of an IRA or employer-sponsored retirement plan passes away. Inherited IRAs can be left to anyone, including spouses, relatives, estates, and trusts.

Tax Alert: The SECURE Act has recently made a number of significant changes to the rules surrounding inherited IRAs. The IRS is currently working on developing content related to this change and their site should be updated soon.