Need Options for an Inherited IRA?
Maintain Tax-Deferred Growth
When you inherit assets that were in a qualified retirement plan, such as an IRA or 401(k) plan, you need to make a decision on what to do with the funds. As a successor beneficiary, you can open and transfer these funds into an Inherited IRA, where they can continue growing tax deferred.
- Transfer the assets into an Inherited IRA
- No 10% early withdrawal penalty
- You choose successor beneficiaries
- The funds continue to grow tax deferred until you withdraw them
- You can access funds at any time. Distributions are taxed as ordinary income
- Required Minimum Distribution rules must be satisfied
- The distribution options available to the successor beneficiary are determined based on the age of the IRA owner at the time of death. If a life expectancy payment option is available, it is most often based on the life expectancy of the beneficiary
You may be required to take annual distributions based on your own life expectancy or deplete the Inherited IRA no later than December 31st of the year that contains the fifth anniversary of the IRA owner's death or distribute the assets under another rule. To find out how this applies to your situation, see IRS Publication 590 or your tax advisor.
A Fifth Third Securities Investment Professional can help you make the most of your Inherited IRA, including the possibility of stretching your distributions to extend the life of the account. To learn more about opening an Inherited IRA, contact a Fifth Third Securities Investment Professional.
Get Advice and Guidance
Fifth Third Securities does not provide tax advice. Please consult your tax advisor before making any decisions or taking any action based on this information.
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