Publication 590 |
2000 Tax Year |
What If I Inherit an IRA?
If you inherit a traditional IRA, it is subject to special rules.
Note.
A traditional IRA is included in the estate of the decedent who
owned it.
Inherited from spouse.
If you inherit a traditional IRA from your deceased spouse, you can
generally roll it over into another traditional IRA established for
you or you can choose to treat the inherited IRA as your own.
You will be considered to have chosen to treat it as your own if:
- Contributions (including rollover contributions) are made to
the inherited IRA, or
- Required distributions are not made from it.
Inherited from someone other than spouse.
If you inherit a traditional IRA from anyone other than your
deceased spouse, you cannot treat the inherited IRA as your own. This
means that contributions (including rollover contributions) cannot be
made to the IRA and you cannot roll over any amounts out of the
inherited IRA. But, like the original owner, you generally will not
owe tax on the assets in the IRA until you receive distributions from
it. You must begin receiving distributions from the IRA under the
rules for distributions that apply to beneficiaries.
More information.
For more information about rollovers, required distributions, and
inherited IRAs, see:
- Rollovers, later in this chapter under Can I
Move Retirement Plan Assets?,
- When Must I Withdraw IRA Assets? (Required
Distributions), later in this chapter under When Can I
Withdraw or Use IRA Assets?, and
- The discussion of beneficiaries later in this chapter under
When Must I Withdraw IRA Assets? (Required Distributions),
and the discussion of inherited IRAs under Are Distributions
Taxable?.
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