These steps will help you make the most of the bittersweet situation you are in.
Once upon a time, if you inherited a Roth IRA, you would be able to stretch the inherited Roth IRA withdrawals out over your lifetime, letting the money grow over the years. Now though, the rules have changed. With the SECURE Act, which was signed into law in December of 2019, planning for an inherited IRA requires a little bit more effort and intention.
This is because the act imposes a new rule on inherited IRAs for any account whose owner died after December 31, 2019, requiring that beneficiaries must empty the account within 10 years of the owner’s death (unless they qualify for an exception).
While this new law definitely limits what you can do with an inherited IRA, there is still some flexibility in how you reap the benefits as long as you stay in the 10-year time limit. Here are five tips to guide you as you plan your strategy.