What are my options if I inherit an IRA from my spouse?

Spouses get the most flexible treatment. You can roll the inherited IRA into your own IRA (a spousal rollover), treating it as if it were always yours; you then follow the normal rules based on your own age, which is often best if you're younger than your late spouse. Alternatively, you can keep it as an inherited IRA, which lets you access funds before age 59 1/2 without the 10% early-withdrawal penalty, handy if you need the money.

A third option is disclaiming it so it passes to the contingent beneficiary. Roth IRAs inherited from a spouse can be rolled into your own Roth and continue growing tax-free with no lifetime distributions. The right choice hinges on your age and cash needs, so review the IRS rules at irs.gov.