How is inheriting an IRA different for a spouse versus a non-spouse?

A surviving spouse gets options no one else does. A spouse can roll the inherited IRA into their own IRA, treat it as their own, name new beneficiaries, and delay required distributions until their own RMD age (73 currently). This keeps the money growing tax-deferred and avoids the 10-year drain. A spouse can also stay a beneficiary if that's more favorable, for instance to access funds before age 59½ without penalty. Non-spouse beneficiaries – adult children, siblings, friends – generally cannot roll the account into their own IRA and are bound by the SECURE Act's 10-year rule, emptying the account within a decade. Because of this gap, married couples often name a spouse as primary beneficiary and children as contingent. Whatever you choose, never cash out an inherited IRA in a panic; the tax bill can be brutal.