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Kiplinger
Kiplinger
Business
Mike Palmer, CFP

Inherited an IRA? Don't Fall Into the 10-Year Tax Trap

(Image credit: Getty Images)

If you inherited an IRA from a parent or loved one in the past few years, you may be facing a hidden tax trap. Since the passage of the SECURE Act, the rules governing inherited retirement accounts have shifted dramatically, and missteps can be costly.

While the SECURE Act rules were initially confusing, the IRS issued final regulations in July 2024 that clear the air but also set the stage for significant penalties if you fail to act.

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