Inherited IRA
RetirementGlossary term
Definition
An IRA received by a beneficiary after the original account holder's death. The SECURE Act of 2019 generally requires non-spouse beneficiaries to withdraw all funds within 10 years, while surviving spouses have more flexible distribution options.
Related terms
- BeneficiaryA person or entity designated to receive assets from a trust, insurance policy, retirement account, or will after the owner's death.
- Stretch IRAA strategy that previously allowed non-spouse beneficiaries to stretch inherited IRA distributions over their lifetime, maximizing tax-deferred growth. The SECURE Act of 2019 largely eliminated this for most beneficiaries, replacing it with a 10-year distribution rule.
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