- Inherited IRA
- An individual retirement account that is left to a beneficiary after the owner's death. If the owner had already begun receiving required minimum distributions (RMDs) at the time of his or her death, the beneficiary must continue to receive the distributions as already calculated or submit a new schedule based on his or her life expectancy.
If the owner had not yet chosen an RMD schedule or reached 70.5 years in age, the beneficiary of the IRA has a five-year window to withdraw the funds, which will be subject to income taxes.
A spouse who receives an inherited IRA can choose to roll it over into his or her existing IRA accounts with no penalties. This option does not exist for non-spouse beneficiaries.
Tax laws surrounding inherited IRAs are quite complicated. Beneficiaries should seek the advice of a tax professional if they inherit an IRA.
Because IRAs are relatively new, look for more changes in tax laws over time as the number of inherited IRAs grows.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
IRA Required Minimum Distributions — Required Minimum Distributions, often referred to as RMDs, are amounts that the federal government requires you to withdraw annually from traditional IRAs and employer sponsored retirement plansLifetime DistributionsAmericans with IRA plans are… … Wikipedia
Inherited runs allowed — In baseball statistics, inherited runs allowed (denoted by IRA) is a measure of the effectiveness of a relief pitcher who enters a game with runners on base.Definition: A relief pitcher is charged with an inherited run allowed when he enters the… … Wikipedia
Roth IRA — A Roth IRA is an Individual Retirement Account (IRA) allowed under the tax law of the United States. Named for its chief legislative sponsor, Senator William Roth of Delaware, a Roth IRA differs in several significant ways from other… … Wikipedia
United Kingdom — a kingdom in NW Europe, consisting of Great Britain and Northern Ireland: formerly comprising Great Britain and Ireland 1801 1922. 58,610,182; 94,242 sq. mi. (244,100 sq. km). Cap.: London. Abbr.: U.K. Official name, United Kingdom of Great… … Universalium
performing arts — arts or skills that require public performance, as acting, singing, or dancing. [1945 50] * * * ▪ 2009 Introduction Music Classical. The last vestiges of the Cold War seemed to thaw for a moment on Feb. 26, 2008, when the unfamiliar strains … Universalium
Imperial cult (ancient Rome) — Ancient Roman religion Marcus Aurelius (head covered) sacrificing at the Temple of Jupiter … Wikipedia
Europe, history of — Introduction history of European peoples and cultures from prehistoric times to the present. Europe is a more ambiguous term than most geographic expressions. Its etymology is doubtful, as is the physical extent of the area it designates.… … Universalium
Provisional Irish Republican Army — (Óglaigh na hÉireann) Participant in the Troubles Masked Provisional IRA volunteers at a rally in August 1979 … Wikipedia
Sharia — Not to be confused with Shahriyār. This article is part of the series … Wikipedia
Seán Mac Stíofáin — (17 February 1928 ndash; 18 May 2001) was an Irish republican and first chief of staff of the Provisional IRA. ChildhoodAlthough he used the Gaelicised version of his name in later life, Mac Stíofáin was born an only child as John Edward Drayton… … Wikipedia