Inherited retirement accounts can be a burden on family members and beneficiaries due to the tax consequences associated with them. Read more about the different ways to mitigate these tax consequences in Michael Kitces post here.

 

Key Takeaways:

-  Some favorable IRS rules do exist such as rolling over the inherited funds to an IRA account for spouses or “stretching” distributions for non-spouse beneficiaries.

- Employer retirement plans such as a 401k are required to permit a non-spouse beneficiary to complete a trustee-to-trustee transfer to an inherited IRA.