You inherited an IRA from a beneficiary, not the original owner. That distinction matters because you generally assume the existing distribution schedule and don’t start a new timeline. As a result, your options may be more limited than what is available for direct beneficiaries. Overlooking these requirements could accelerate withdrawals, and, if you ignore the rules, cost you more in taxes and penalties.
Why a Second-Generation IRA Is Different
The SECURE Act of 2019 generally requires most nonspouse beneficiaries to fully distribute an inherited IRA within 10 years. 1 Successor beneficiaries may have less time, depending on the schedule…
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