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- A surviving spouse who is the sole beneficiary can generally treat an inherited IRA as their own, roll it into an eligible account, or keep it as an inherited IRA.
- Keeping the account inherited may preserve more flexible access before age 59½, while moving it into your own IRA can simplify ownership and may delay RMDs.
- The right choice depends on whether the account is traditional or Roth, whether the deceased spouse had reached the required beginning date, and when you need the money.
What should you do with an inherited IRA after your spouse dies?
For U.S. tax purposes, a surviving spouse who is the sole beneficiary of an IRA generally has more choices than any other beneficiary. You may be able to designate yourself as the owner, roll the account into your own IRA or another eligible retirement plan, or keep it as an inherited IRA.
There is no single best option. The most important distinction is whether you want the account governed by your own age and withdrawal rules or by beneficiary rules tied to your spouse’s death.
If you are under age 59½ and may need withdrawals soon, keeping the account inherited can be valuable because distributions to a beneficiary of a deceased IRA owner generally avoid the 10% additional tax on early distributions. If you move the money into your own IRA, withdrawals before age 59½ may be subject to that tax unless another exception applies.
This article explains U.S. federal rules. Canadian registered accounts, including RRSPs and RRIFs, follow different rules.
Your three main choices
| Choice | What it means | When it may make sense |
|---|---|---|
| Treat it as your own | The account becomes your IRA. You follow the regular owner rules for contributions, withdrawals, and RMDs. | You want simpler ownership, continued tax-deferred growth, or more control over beneficiaries. |
| Roll it into your own IRA | You move eligible assets into an IRA in your name, usually by a trustee-to-trustee transfer. | You want to consolidate accounts or use your own investment and beneficiary arrangements. |
| Keep it inherited | The account remains identified as an inherited IRA, and withdrawals follow beneficiary distribution rules. | You need access before age 59½, want to postpone ownership decisions, or need distributions based on beneficiary rules. |
The IRS says a surviving spouse is generally considered to have chosen ownership if contributions are made to the inherited IRA or if a required distribution that should have been taken as a beneficiary is not taken. Because account documents and custodian procedures can affect how the election is handled, do not move or rename the account casually.
When treating the inherited IRA as your own may be better
Designating yourself as the owner can make sense when you are at least age 59½, do not need beneficiary-style access, and want the account treated like your other retirement savings.
If the deceased spouse had not reached the required beginning date, treating the account as your own may allow you to delay your first RMD until the year you reach the applicable RMD age. Under current federal rules, the applicable age is generally 73 for people born from 1951 through 1959 and 75 for people born in 1960 or later. Your exact required beginning date can depend on your birth year and the account type.
Once the account is your own, your RMDs are based on your circumstances rather than your spouse’s age. That can be useful if you are younger than your spouse or if you want the account to fit neatly with your existing IRA planning.
The trade-off is early-access flexibility. If you are younger than 59½, a taxable withdrawal from an IRA treated as your own may be subject to the 10% additional tax. That is different from a qualifying distribution from an inherited IRA, which generally receives the beneficiary exception.
When keeping the account inherited may be better
Keeping the account inherited is often worth considering if you are younger than 59½ and may need withdrawals. Beneficiary distributions generally are not subject to the 10% additional tax simply because of your age, although taxable amounts from a traditional IRA still count as income.
The inherited option can also be useful when your spouse died before the required beginning date and you want to preserve beneficiary distribution choices. A surviving spouse who is the sole designated beneficiary may generally take distributions over their life expectancy or elect the 10-year rule. Under the 10-year rule, the account must generally be emptied by December 31 of the tenth year after the owner’s death.
If your spouse died after the required beginning date, life-expectancy distributions may be required from an inherited traditional IRA. The account owner’s final-year RMD, if any, also needs to be addressed. A missed RMD can create tax complications, so confirm whether your spouse had already taken the required distribution for the year of death.
Traditional IRA versus inherited Roth IRA
The account type changes the tax analysis.
Traditional inherited IRA
Distributions from a traditional inherited IRA are generally taxable to the extent they consist of pretax money or earnings. Large withdrawals in a single year can increase your taxable income and may affect other income-based items, such as Medicare premiums or taxation of Social Security benefits.
Inherited Roth IRA
Inherited Roth IRA distributions are generally more tax-friendly. Contributions and qualified earnings are usually distributed tax-free, although the Roth account’s five-year history can matter for earnings. An inherited Roth IRA still has beneficiary distribution rules even though the original owner generally was not subject to lifetime RMDs.
For either account type, keeping the IRA inherited can preserve the beneficiary status that makes early distributions more flexible. Moving an inherited Roth IRA into your own Roth IRA may also change how future distribution rules apply, so the account’s age and your own Roth history should be reviewed first.
What changes if you were not the sole beneficiary?
The cleanest spousal options usually apply when you are the sole designated beneficiary and have an unlimited right to withdraw the account. If children, a trust, or another person also received a share, the account may need to be divided or handled separately.
You may still be able to roll a distribution from your deceased spouse’s IRA into your own IRA within 60 days, provided the distribution is not an RMD. However, that is different from automatically treating the entire inherited IRA as your own. A direct transfer handled by the custodian is usually easier to document than receiving the money personally.
Beneficiary status is generally determined after reviewing the account documents and the beneficiary designation. For employer plans such as a 401(k), the plan’s terms may provide different procedures or rollover choices than an IRA.
A practical decision path for surviving spouses
- Identify the account type. Confirm whether it is a traditional IRA, Roth IRA, SEP IRA, SIMPLE IRA, 401(k), or another employer plan.
- Confirm the beneficiary designation. Find out whether you were the sole beneficiary and whether the account has already been divided.
- Check whether your spouse had reached the required beginning date. This affects whether beneficiary RMDs are required and which distribution options may be available.
- Decide whether you may need money before age 59½. If yes, compare the inherited-account exception with the possible 10% additional tax after moving the money into your own IRA.
- Estimate the income-tax effect. For a traditional IRA, compare taking withdrawals over several years with taking a large lump sum.
- Use a direct trustee-to-trustee transfer when possible. Ask the custodian to title the account correctly and identify whether it is your own IRA or an inherited IRA.
- Review beneficiaries after the transfer. Your spouse’s former beneficiary designations do not automatically reflect your estate plan.
Before making an irreversible election, ask the IRA custodian how it will report the transaction and have a qualified tax professional model the RMD and income-tax consequences. The best answer often depends less on investment performance than on your age, cash-flow needs, and expected tax bracket.
Helpful Links
- IRS Publication 590-A – Review the IRS rules for treating a spouse's inherited traditional IRA as your own, rolling it over, or remaining the beneficiary.
- IRS Publication 590-B – Check inherited IRA distribution rules, beneficiary RMDs, the 10-year rule, life-expectancy payments, and early-distribution exceptions.
- IRS Retirement Topics: Beneficiary – Compare surviving-spouse and non-spouse beneficiary options for IRA and retirement-plan accounts.
- IRS Retirement Topics: Death of Spouse – Review IRS guidance on beneficiary changes, employer plans, and additional resources after a spouse's death.
- IRS Required Minimum Distributions – Review current IRS information about required beginning dates and RMD calculations.
Frequently Asked Questions
Q. Can I leave an inherited IRA in my deceased spouse's name indefinitely?
A. Usually, the account can remain an inherited IRA while you follow the applicable beneficiary distribution rules. The custodian may require a specific title showing that you are the beneficiary of the deceased owner.
Q. Can I roll an RMD from an inherited IRA into my own IRA?
A. Generally, no. Required minimum distributions are not eligible for rollover. A rollover may be possible for other eligible amounts, but the transaction must be handled within the applicable rules and deadlines.
Q. Does a surviving spouse pay the 10% early-withdrawal tax on inherited IRA distributions?
A. Generally, distributions from an inherited IRA are not subject to the 10% additional tax merely because the beneficiary is under age 59½. If the spouse treats the account as their own, later withdrawals before age 59½ may be subject to that tax unless another exception applies.
Q. What happens if the deceased spouse had already started RMDs?
A. The beneficiary may need to continue distributions under the inherited-account rules, and any RMD due for the year of death that was not taken may still need to be distributed. Confirm the year-of-death RMD with the custodian or a tax professional.
