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If you inherited your spouse’s IRA, the account itself generally isn’t taxed when you receive it. Withdrawals from a traditional IRA count as taxable income, which can increase how much of your Social Security benefits becomes taxable. That could raise your federal tax bill, but as a surviving spouse, you may be able to time distributions to help minimize taxes.
How an Inherited IRA Could Affect Social Security Taxes
Taxable withdrawals raise your provisional income, which determines how much of your Social Security benefits could become taxable. This is calculated using your other income, tax-exempt interest and half of your Social Security benefits. Here is a breakdown of the 2026 thresholds: 1
| Filing status | Provisional income | Taxable Social Security Amount |
|---|---|---|
| Single | $25,000 or less | None |
| Single | More than $25,000 to $34,000 | Up to 50% |
| Single | More than $34,000 | Up to 85% |
| Married filing jointly | $32,000 or less | None |
| Married filing jointly | More than $32,000 to $44,000 | Up to 50% |
| Married filing jointly | More than $44,000 | Up to 85% |
The 85% limit does not mean you pay an 85% tax rate. It applies specifically to the percentage of Social Security benefits that could be included in taxable income. Your actual federal tax depends on your tax bracket and other factors.
A financial advisor can help compare withdrawals and their effect on your Social Security taxes.
What a $250,000 Inherited IRA Could Mean for Your Tax Bill
If you are 62 years old and inherited a $250,000 traditional IRA from your husband, your provisional income could start at $22,000. This estimate is based on filing as single, collecting $24,000 annually in benefits and having $10,000 in taxable income from other sources. The amount is calculated by adding that taxable income to half of your benefits ($12,000).
The table below breaks down how different withdrawal amounts change that figure and the taxable portion of your Social Security:
| IRA withdrawal | Provisional income | Taxable income from Social Security |
|---|---|---|
| $0 | $22,000 | $0 |
| $10,000 | $32,000 | $3,500 |
| $25,000 | $47,000 | $15,550 |
| $50,000 | $72,000 | $20,400 |
With no IRA withdrawal, the $22,000 total is $3,000 below the $25,000 threshold, so none of the Social Security is included in taxable income. A $10,000 withdrawal, however, raises your provisional income to $32,000, which puts $7,000 above the threshold. Half of that amount ($3,500) would then be taxable.
If your provisional income is $47,000, about 64.8% ($15,550) of your $24,000 benefit would be taxable.
| Step | Calculation | Result |
|---|---|---|
| Amount in the 50% range | $34,000 − $25,000 | $9,000 |
| 50% portion | $9,000 × 50% | $4,500 |
| Amount above $34,000 | $47,000 − $34,000 | $13,000 |
| 85% portion | $13,000 × 85% | $11,050 |
| Total taxable Social Security | $4,500 + $11,050 | $15,550 |
| Share of benefits that is taxable | $15,550 ÷ $24,000 | About 64.8% |
At about $52,700 of provisional income, the calculation reaches the 85% maximum. That means $20,400 of the $24,000 benefit would be taxable. Provisional income above the $52,700 level would not increase that amount.
IRA withdrawals don’t count as earned income, so they won’t reduce your benefits under the Social Security earnings test.
4 Inherited IRA Options for Surviving Spouses
If you are the sole beneficiary, you may treat the IRA as your own by retitling it or rolling it into an IRA in your name. You can also keep it as an inherited account. Your choice affects when required minimum distributions (RMDs) begin and which rules apply. The table compares each account choice, along with how the size of your withdrawals could affect your taxes:
| Option | How It Works |
|---|---|
| Treat it as your own IRA | RMDs are generally based on your age rather than your husband’s |
| Keep it as an inherited IRA | RMD timing can depend on your husband’s age and whether he had already started taking them |
| Take larger withdrawals | More taxable income in the current year and potentially more Social Security included in taxable income |
| Take smaller withdrawals | Less taxable income in the current year while leaving more of the balance for future years |
A financial advisor can help you decide whether to treat the IRA as your own or keep it inherited.
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Article Sources
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- Social Security Administration. “Retirement Benefits.” January 2026. https://www.ssa.gov/pubs/EN-05-10035.pdf.