Inherited IRA? Avoid These Common – and Costly – Mistakes

If you’ve recently inherited an IRA from a loved one, please know we’re here to support you. This kind of inheritance can be both a meaningful gift and a complex responsibility. It’s critical to understand your options before making any decisions—because inherited IRAs come with a unique set of rules that vary depending on your relationship to the deceased, and missteps can be irreversible.

Thanks to recent legislative changes under the SECURE Act and SECURE 2.0, managing inherited IRAs, especially for non-spouse beneficiaries, is more complicated than ever. Many long-standing rules have changed, and failure to follow the updated guidance can result in significant tax consequences.

To help you navigate the process confidently and avoid costly errors, we’ve created a free resource, “Avoid Non-Spouse Beneficiary Mistakes in 5 Easy Steps.”

Inherited IRA

• Don’t rush. Taking an immediate distribution could cost you years of tax-deferred growth.
• Set up a properly titled inherited IRA. Non-spouse beneficiaries cannot do a 60-day rollover and must follow strict transfer rules.
• Split the account if there are multiple beneficiaries. This ensures each person receives the maximum payout period allowed under the law.
• Know your RMD obligations. Most non-spouse beneficiaries must empty the account within 10 years—and in some cases, take annual distributions along the way.
• Stay ahead of deadlines. Missing key dates could mean missing out on tax benefits—or worse, facing penalties.

If you’ve inherited an IRA—or want to ensure your heirs are protected from costly missteps—we’re here to help. Contact our office at 940-464-4104 to schedule a time to discuss your options. You may also book a virtual consultation at https://RFGWealthAdvisory.com/virtualconsultation. We’ll guide you through the complexities and help you make choices aligned with your long-term goals and legacy plans.

RFG Wealth Advisory in Argyle, Texas, is an independent, fee-only Registered Investment Advisor firm that always puts our clients’ interests first. We have a transparent, simple fee structure that’s easy to understand. Call us today!

Financial success doesn’t happen by chance, especially in times of transition. Let’s plan together.