If you inherit assets from an IRA or other retirement account, you can choose to take a lump-sum distribution or transfer the assets into an inherited IRA. Taking a lump-sum distribution provides immediate liquidity, but also incurs an immediate taxable event. If you don’t need the money right away, consider transferring the assets to an inherited IRA because you can defer taxes until you are required to take minimum distributions.

Since there are several factors to consider with inherited IRAs, talk with you tax or financial professional to get the best advice for your situation.

This entry was posted on Wednesday, June 27th, 2007 at 4:49 am and is filed under Self-Directed IRA. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.