Inherited IRA Rules

If you have an inherited IRA from a spouse that died in 2020, do you need to take distributions yearly and drain the account in 10 years? I keep reading that the spouse can wait until the owner of the IRA turns 72 and start taking RMDs at that time.

Also, once you create an inherited IRA from your spouse, can you then roll it over into your own IRA?



A sole surviving spouse beneficiary can elect to assume ownership at anytime. If maintained as inherited, normally to be able to take penalty free distributions prior to age 59.5, beneficiary RMDs are not required until the year the deceased spouse would have reached 72. The surviving spouse is an EDB (eligible designated beneficiary) and therefore the 10 year rule does not apply. These rules are basically the same for spouse beneficiaries as they were prior to the Secure Act.



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