If you are the beneficiary of an IRA there are a few things that you should know.
A spouse who inherits has an option not available to other inheritors. She can roll the assets into her own IRA and postpone distributions from a traditional IRA until she turns 70 1/2.
A non-spouse, a child for example, can draw distributions out over their own expected life spans, enjoying decades of income-tax-deferred growth in a traditional IRA. However, to make sure that you will be able to take advantage of this “Stretch IRA” you have to follow the proper procedures.
IRA Forbes.com has an article, “Five Rules for Inherited IRAs” that you should read.
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