Talk to an Advisor

Beneficiary IRA

Learning Center Menu

Beneficiary IRA

A beneficiary IRA, also known as an inherited IRA, is a type of retirement account that is acquired by the non-spouse beneficiaries of a deceased individual's IRA (Individual Retirement Account) or other retirement plan. These beneficiaries could be children, grandchildren, other non-spouse relatives, or even non-relatives such as friends or trusts.

The rules for how the funds in a beneficiary IRA can be accessed and taxed depend on several factors, including the type of the original retirement account, the age of the original account holder at the time of death, and the relationship of the beneficiary to the deceased.

The SECURE Act passed in the US in 2019 significantly changed the rules for inherited IRAs. Most non-spouse beneficiaries are now required to withdraw all funds from an inherited IRA within 10 years of the original owner's death, rather than over their own life expectancy as was previously allowed. This change can have significant tax implications.

For the most accurate and up-to-date information, you should consult a tax advisor or financial professional, as the rules can be complex and change over time.

Have questions?

We'd love to guide you through the 1031 process, let us know how we can help!