Account Type

Inherited IRA

Also known as a beneficiary IRA, an Inherited IRA is created for beneficiaries when an individual inherits an IRA or retirement plan.

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At a Glance

What should you know about a self-directed Inherited IRA?

To finalize a new Inherited IRA, you may need to provide additional documentation. Before starting the Inherited Election Form, prepare to attach the applicable documents listed below.

  • If you hold an IRA with another custodian, please provide us with an account statement from that custodian. This statement should include your name as the beneficiary, the complete account number, account type, and the full naming convention reflecting the Decedent’s name.
  • If you are inheriting this account from a NDTCO client, a certified copy of the death certificate is necessary. 

Tax Benefits

Other Considerations

Getting Started

How do you fund your Inherited IRA account?

Contributions

Spousal beneficiaries may only make contributions when you elect to treat the inherited account as your own IRA. You may not make contributions to a beneficiary IRA. 

Transfers

Beneficiaries may transfer the inherited IRA according to the rules of the account type. Multiple IRAs from the same decedent may by transferred into a single account.  

Rollovers

Sole spousal beneficiaries may complete a rollover of the inherited account according to the rules of the account type. An inherited qualified retirement plan, such as a 401(k) or 457 plan, may be rolled over into a beneficiary IRA by direct rollover only. Once an Inherited IRA is established, it does not allow for rollovers. 

Distribution Rules

What should you know about Inherited IRA distributions?

Minimum Distribution Facts

Early Distribution Facts

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Other Investments

ROI is everywhere if you know where to look

No financial advisor knows you better than yourself. With an Inherited IRA, you have the freedom to invest your tax-advantaged retirement funds in the assets you’re most passionate about. 

From real estate to start-ups to small businesses, if you can find it, we will help you fund it.

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Education Center

Want to learn more about Inherited IRA accounts?