Blog Series: The Top 10 Mistakes People Make When They Inherit an IRA – and How to Avoid Them!

Retirement accounts make up the majority of many people’s estates and, unfortunately, many owners of IRAs are not aware of all of the complicated tax laws regarding distributions from these retirement accounts.

Although many individuals have established complex estate planning strategies, such as revocable living trusts, irrevocable life insurance trusts, etc., many individuals have not addressed the complex estate planning issues of inheriting an IRA.

Many people are faced with very important decisions when they inherit an IRA. To top it all off, if their decision is not the best choice, it is usually irrevocable!

Unfortunately, IRA accounts are subject to many different types of taxes and penalties upon death, which is often referred to as the “triple tax syndrome.”

Improper decisions can be financially devastating. Therefore, it is extremely important that you seek qualified, competent financial counseling before you make your final decision with regard to what action you will take.w

Over the next 10 days we will outline 10 mistakes to avoid when dealing with inherited IRAs and important issues associated with them for you to discuss with your trusted advisors.


Subject matter adapted from MD Producer material.