Can an Inherited IRA Be Rolled Over?

If you inherit an individual retirement account (IRA) from a spouse, you can treat it like your own IRA or roll it over into a traditional IRA you already have. If you are the beneficiary of an IRA inherited from someone other than your spouse, the options are different. You can’t roll it over into an existing IRA, but you can transfer it into a new IRA if you satisfy certain requirements. In either case, failing to follow the rules can result in the IRA being treated as a taxable distribution.

A financial advisor can guide you when you inherit an IRA or receive another windfall.

Inheriting an IRA From a Spouse

The owner of an IRA can designate anyone to be the beneficiary of an IRA or other retirement account after the owner’s death. When inheriting an IRA from a spouse, beneficiaries often have more flexibility compared to non-spousal heirs.

Spouses can choose from several options to manage the inherited funds, including a rollover, to better align the account with their financial goals and retirement plans.

1. Rollover to Existing IRA

The surviving spouse can roll over the inherited IRA into an existing IRA that they own. This can be any number of different accounts:

Traditional IRA

Roth IRA (after conversion)
Taxable distributions, including qualified employer retirement plans (401(a) or 403(b) annuity plans, 457(b) plan)

If the rollover route is selected, it can be accomplished by a direct trustee-to-trustee transaction. You may also take the funds from the account as a distribution and then deposit the funds into another IRA within 60 days. Waiting longer than 60 days to re-deposit the funds into an IRA risks having the distribution taxed like income.

The most desirable way is to use the direct trustee-to-trustee transaction. This can be set up in advance if the original owner made their inheritance wishes known.

Similarly, the surviving spouse can also name themselves as the owner of the IRA instead of rolling it over. In this event, it will be as if the surviving spouse had always owned the account. The same distribution rules will apply for taking money out of the account as if you had opened the account yourself at its inception.

The beneficiary’s age determines inheritance taxes. That means, for instance, any pre-tax distributions before age 59 ½ will be charged a 10% penalty, in addition to income taxes.

Starting at age 73, the beneficiary will have to start taking the annual required minimum distributions (RMDs), with the RMD age going up to 75 in 2034. However, if the deceased spouse had already reached RMD age, the surviving spouse would follow that RMD schedule, instead of their own.

Get a personalized RMD estimate to help you plan smarter withdrawals.

Required Minimum Distribution (RMD) Calculator

Estimate your next RMD using your age, balance and expected returns.

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About This Calculator

This calculator estimates RMDs by dividing the user's prior year's Dec. 31 account balance by the IRS Distribution Period based on their age. Users can enter their birth year, prior-year balances and an expected annual return to estimate the timing and amount of future RMDs.

For IRAs (excluding Roth IRAs), users may combine balances and take the total RMD from one or more accounts. For 401(k)s and similar workplace plans*, RMDs must be calculated and taken separately from each account, so balances should be entered individually.

^*The IRS allows those with multiple 403(b) accounts to aggregate their balances and split their RMDs across these accounts.

Assumptions

This calculator assumes users have an RMD age of either 73 or 75. Users born between 1951 and 1959 are required to take their first RMD by April 1 of the year following their 73rd birthday. Users born in 1960 and later must take their first RMD by April 1 of the year following their 75th birthday.

This calculator uses the IRS Uniform Lifetime Table to estimate RMDs. This table generally applies to account owners age 73 or older whose spouse is either less than 10 years younger or not their sole primary beneficiary.

However, if a user's spouse is more than 10 years younger and is their sole primary beneficiary, the IRS Joint and Last Survivor Expectancy Table must be used instead. Likewise, if the user is the beneficiary of an inherited IRA or retirement account, RMDs must be calculated using the IRS Single Life Expectancy Table. In these cases, users will need to calculate their RMD manually or consult a finance professional.

For users already required to take an RMD for the current year, the calculator uses their account balance as of December 31 of the previous year to compute the RMD. For users who haven't yet reached RMD age, the calculator applies their expected annual rate of return to that same prior-year-end balance to project future balances, which are then used to estimate RMDs.

This RMD calculator uses the IRS Uniform Lifetime Table, but certain users may need to use a different IRS table depending on their beneficiary designation or marital status. It's the user's responsibility to confirm which table applies to their situation, and tables may be subject to change.

Actual results may vary based on individual circumstances, future account performance and changes in tax laws or IRS regulations. Estimates provided by this calculator do not guarantee future distribution amounts or account balances. Past performance is not indicative of future results.

SmartAsset.com does not provide legal, tax, accounting or financial advice (except for referring users to third-party advisers registered or chartered as fiduciaries ("Adviser(s)") with a regulatory body in the United States). Articles, opinions and tools are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual. Users should consult their accountant, tax advisor or legal professional to address their particular situation.

2. Keep as Inherited IRA

Alternatively, spouses can keep the account as an inherited IRA, maintaining the original account structure.

This option is particularly beneficial if the surviving spouse is younger than 59 ½ and may need to access the funds without incurring early withdrawal penalties. RMDs are required based on either the original account holder’s schedule or the surviving spouse’s life expectancy.

While this approach offers flexibility for withdrawals, it doesn’t allow new contributions or the ability to defer RMDs.

Inheriting From a Non-Spouse

If you inherit an IRA from someone other than your spouse, you typically cannot treat the account as your own or roll it into an existing IRA. Furthermore, you cannot make additional contributions to an inherited IRA.

Instead, the account must remain an inherited IRA subject to specific rules and limitations. It’s important to note that recent changes under the SECURE Act of 2019 and the SECURE Act 2.0 have significantly impacted how non-spouse beneficiaries must manage inherited IRAs.

Before the SECURE Act, non-spouse beneficiaries could stretch these mandatory distributions from an inherited IRA over many years using their own life expectancy. However, under the first SECURE Act, most non-spouse beneficiaries are required to empty the account within 10 years of the original owner’s death. This rule applies to both traditional and Roth IRAs and replaces the previous option to stretch distributions over the beneficiary’s lifetime.

Non-spouses have a few options. They can treat the account as their own or take distributions based on the spouse’s current age each year.

Use the beneficiary’s or owner’s age at year-end following owner’s death, whichever is less
Use the oldest age of multiple beneficiaries
Subtract 1 from beginning life expectancy for each subsequent year

Take owner’s RMD for year of deathExceptions to the 10-Year Rule

Eligible designated beneficiaries (EDBs) are exceptions to the 10-year rule.

This category includes the deceased’s spouse, minor children, disabled or chronically ill dependents and beneficiaries who are no more than 10 years younger than the original account holder.

EDBs can take RMDs based on their life expectancy. However, minor children must transition to the 10-year rule upon reaching the age of majority.

Other Options for Inherited IRAs

Instead of opening an inherited IRA, the person who inherited the IRA can take a lump sum distribution. Even if the person is younger than 59 ½, the distribution won’t be subject to the usual 10% penalty for an early withdrawal. However, the distributed funds will be subject to income taxes immediately upon withdrawal.

The beneficiary can also disclaim their inheritance, effectively refusing the inherited IRA. This legal process allows the account to pass to the next eligible beneficiary, typically outlined in the original account holder’s beneficiary designation.

For beneficiaries who do not need the funds and want to avoid triggering RMDs and the associated taxes, disclaiming allows the next beneficiary to assume control and manage the withdrawal timeline.

Special Rules for Inheriting Roth IRAs

Roth IRAs follow a separate inheritance framework that differs from traditional IRAs.

A spouse beneficiary can treat the Roth IRA as their own, roll it into an existing Roth IRA or maintain it as an inherited Roth IRA. Treating it as their own removes any lifetime distribution requirements while allowing for tax-free growth.

Non-spouse beneficiaries must keep the account as an inherited Roth IRA. They cannot combine it with their own Roth IRA or make new contributions to it. Under the SECURE Act rules, most non-spouse beneficiaries must fully distribute the inherited Roth IRA within 10 years of the original owner’s death.

However, the five-year rule still applies. If the original owner had not met the five-year holding period, the earnings portion of early withdrawals can be taxable.

As of 2025, non-spouse beneficiaries must take annual RMDs within the 10-year period if the original owner had already reached their required distribution age. Although Roth IRAs do not have RMDs for owners, this requirement applies once the account becomes an inherited IRA.

Eligible designated beneficiaries, including disabled individuals, chronically ill individuals and beneficiaries within 10 years of the decedent’s age, may use a life-expectancy payout schedule instead of the 10-year rule. Minor children may also use a life-expectancy schedule until reaching the age of majority, at which point the 10-year period begins.

Bottom Line

Inheriting an IRA from a spouse means the beneficiary simply names themselves as the new owner of the account, treating it as if it had been theirs all along. Likewise, the surviving spouse can roll the funds into their own IRA. For heirs other than a spouse, the most common option is to set up an inherited IRA.

Sometimes it might make more sense to disclaim an inherited IRA if, for example, the inherited funds would mean the beneficiary’s estate would be so large it would incur the federal estate tax. In the event an IRA is disclaimed, the funds would go to other beneficiaries named on the account.

Tips for Handling IRAs

A financial advisor can help you manage retirement accounts that you inherit from loved ones. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Consider using a retirement calculator to estimate how much you may need to save each year to live the retirement you want.