How to Navigate Inheriting an IRA from a Parent

Understanding the rules can help you make the most of the money you inherit and avoid tax surprises.

Published on Feb. 23, 2026

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When inheriting an IRA from a parent, there are specific rules you need to follow. This includes setting up a new inherited IRA account, understanding the 10-year withdrawal rule, and minimizing your tax burden through strategic withdrawals. Working with a financial advisor can help you navigate these decisions.

Why it matters

Inheriting an IRA can be a complex process, with various rules and tax implications to consider. Understanding the proper steps to take can help ensure you maximize the inherited funds and avoid costly mistakes.

The details

After inheriting an IRA from their father, the writer's brother and they need to transfer the account into a newly-established inherited IRA, properly titled in the deceased owner's name. If there are multiple beneficiaries, the IRA can be split into separate inherited accounts. Under the SECURE Act, most non-spouse beneficiaries must withdraw all the money from an inherited IRA by the end of the 10th year following the original owner's death. Exceptions include a surviving spouse, a minor child, a disabled or chronically ill beneficiary, or someone within 10 years of the original IRA owner's age. Withdrawals from a traditional IRA are generally taxed as income, so spreading distributions over the 10-year period can help manage taxes.

  • The writer's father passed away late last year.

The players

Oldest Sibling

The writer, who recently inherited their father's IRA along with their brother.

John Smith

The deceased IRA owner, the writer's father.

Jane Smith

The writer, one of the beneficiaries of the inherited IRA.

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What they’re saying

“What are the rules regarding inherited IRAs? My brother and I recently inherited our father's IRA when he passed away late last year and would like to know what we need to do to handle it properly.”

— Oldest Sibling (New Rockford Transcript)

What’s next

To help navigate these decisions, the writer and their brother should consider working with a financial advisor. If they don't have one, they can find a fee-only, fiduciary financial planner through the National Association of Personal Financial Advisors.

The takeaway

Inheriting an IRA from a parent can be a complex process, but understanding the rules and taking the proper steps can help ensure you maximize the inherited funds and minimize your tax burden.