Special rules for inherited IRAs

Description

Abstract: Normally, retirement plan distributions made to a nonspouse beneficiary after the account owner’s death are taxable at the time they are received and cannot be rolled over to the beneficiary’s own IRA. However, employer-sponsored retirement plans are required to offer nonspouse beneficiaries the option to roll over inherited amounts tax-free in a direct rollover to an inherited IRA. This article lists the special rules that apply to an inherited IRA.