SPOUSE BENEFICIARY
When a Spouse is inheriting a Traditional IRA from the dying spouse who is under 70 ½ years old, there are FOUR options:
- Spousal Transfer (treat as your own account)
- Open an Inherited IRA (Life Expectancy Method)
- Open an Inherited IRA (5-Year Method)
- Lump Sum Distribution
When a Spouse is inheriting a Traditional IRA from the dying spouse who is over 70 ½ years old, there are THREE options:
- Spousal Transfer (treat as your own account)
- Open an Inherited IRA (Life Expectancy Method)
- Lump Sum Distribution
When a Spouse is inheriting a Roth IRA, there are FOUR options:
- Spousal Transfer (treat as your own account)
- Open an Inherited IRA (Life Expectancy Method)
- Open an Inherited IRA (5-Year Method)
- Lump Sum Distribution
NON-SPOUSE BENEFICIARY
When a Non-Spouse is inheriting a Traditional IRA from an account holder who is under 70 ½ years old, there are THREE options:
- Open an Inherited IRA (Life Expectancy Method)
- Open an Inherited IRA (5-Year Method)
- Lump Sum Distribution
When a Non-Spouse is inheriting a Traditional IRA from an account holder who is over 70 ½ years old, there are TWO options:
- Open an Inherited IRA (Life Expectancy Method)
- Lump Sum Distribution
When a Non-Spouse is inheriting a Roth IRA, there are THREE options:
- Open an Inherited IRA (Life Expectancy Method)
- Open an Inherited IRA (5-Year Method)
- Lump Sum Distribution