What do I need to know about inheriting an IRA?

Inheriting an IRA comes with rules that changed significantly under the SECURE Act. Most non-spouse beneficiaries (adult children, for example) must empty the entire inherited IRA within 10 years of the original owner's death – the old 'stretch IRA' over a lifetime is gone. For inherited Traditional IRAs, those withdrawals are taxable; for inherited Roth IRAs, they're generally tax-free but still must be emptied in 10 years. A surviving spouse gets more flexibility and can treat the IRA as their own. Certain eligible beneficiaries (minor children, disabled, or chronically ill heirs) get special treatment. If the original owner was already taking required distributions, annual withdrawals may also be required during the 10 years. Naming beneficiaries directly on the account – not via your will – keeps the IRA out of probate and is essential for your own estate plan.