inherited IRA

Definition

An IRA that becomes the property of someone other than the spouse of the deceased owner of the IRA. Inherited IRAs are subject to special regulations. The beneficiary receives the distribution by December 31 of the fifth year after the death of the owner. In addition, this type of IRA does not allow for tax deduction contributions and rollovers to and from other IRAs. The IRA can also be paid as an annuity or in periodic installments not extending beyond the beneficiary's life expectancy.

Use inherited IRA in a sentence

You may want to try and take out an inherited ira so that you know it will be passed on to those you love.

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The inherited ira was becoming the property of someone and that was something I had to explain it to someone.

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Since his mom was already deceased, John received an inherited IRA when his father passed away. He would not receive it for at least five years, but it would be his money.

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