Can I Delay Distributions From The Traditional IRA I Inherited?

The rules for delaying distributions from a Traditional IRA that you inherited depend on your relationship with the original account owner and the age of the account owner at the time of their death.

If you inherited a Traditional IRA from a spouse who has passed away, you have the option to treat the account as your own and delay distributions until you reach age 73, as long as you do not need to take any required minimum distributions (RMDs) before that age. This means you can continue to enjoy the tax-deferred growth of the investments in the account.

If you inherited a Traditional IRA from someone other than a spouse, you must start taking RMDs from the account by December 31 of the year following the year the original account owner passed away. The amount of the RMD will be based on your age and life expectancy, and the account balance.

Keep in mind that if you choose to delay distributions from a Traditional IRA that you inherited, you will still be required to pay taxes on any distributions you eventually take from the account. Additionally, if you fail to take RMDs from the account when required, you may be subject to penalties from the IRS. It's important to consult with a financial advisor or tax professional to understand the specific rules and implications of delaying distributions from an inherited Traditional IRA in your individual situation.

Click here to continue

Robert J. Pyle, CFP®, CFA, AEP® founded Diversified Asset Management, Inc., in 1996 to provide personalized, comprehensive wealth management services to successful individuals, families, single women, and business owners. His specialty is addressing the complex financial needs of self-employed professionals, corporate executives, and small-business owners. Our disclosure can be found here. The views, opinion, information, and content provided here are solely those of the respective authors, and may not represent the views or opinions of Diversified Asset Management, Inc. Diversified Asset Management, Inc. cannot guarantee the accuracy or currency of any such third party information or content, and does not undertake to verify or update such information or content. Any such information or other content should not be construed as investment, legal, accounting, or tax advice.