What to do with an Inherited IRA or 401K.

"What to do with an Inherited IRA or 401K."

Are you inheriting an IRA or 401k and unsure about the tax consequences?

Hey Taxpayers, Tiffany Gonzalez, CPA here and as a CPA with over 12 years of experience, I’m here to help you navigate this complex situation. In this video, we’ll break down the tax rules you need to know when inheriting a retirement account like an IRA or 401k.

Whether you’re a spouse, child, or other beneficiary, there are specific requirements and deadlines you must follow to avoid penalties. I’ll cover the different options you have, including taking required minimum distributions (RMDs), rolling over the account, or cashing out—and the tax implications of each choice.

You don’t want to make a costly mistake that could reduce your inheritance or trigger unnecessary taxes. So, if you’re facing this situation, or just want to be prepared for the future, watch this video to get the facts you need.

Understanding your options can help you make informed decisions and maximize your inheritance.

Tune in and get your Financial I.Q up!

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[cannonball]

Any advice for disributing an inherited IRA among multiple grandchildren? I was the beneficiary on my mom's account, she wanted it to go equal to my 3 children, and my brothers 3 children.

[rolando]

Would the 10 year clean out rule apply to disabled veterans and still qualify under stretch out IRA strategy?

[garykellerup]

I have a Roth IRA. My son has one too. When my son inherits my ROTH does he move the inherited funds to his ROTH IRA? Or would he now have 2 ROTHs? Thanks, Great video.

[christiantovar]

Hello Ms. Gonzalez, my uncle passed away this February 4th and I am still waiting on his death certificate. His employer sent me the 401k Death Form along with a guide. I am a non spouse beneficiary. He was 54 years old and I am 32 years old. He was born 1974. His plan is in Empower. I don't know if its IRA or Roth. Is it just considered 401k? Since I have some financial hardships could I take a lump sum this year ?

[rpl]

You mentioned that if yearly RMD's had started for the original account holder, yearly RMD's are required for the beneficiary also. Is that yearly RMD based on the original account holder's life expectency factor or the beneficiary's life expectency factor? Also, if the original owner passed away before the RMD was withdrawn for that calendar year, are the beneficiaries repsonsible for the original account holder's year of death RMD withdrawal? Can it be split between muntiple beneficiaries?