Inherited IRA rules changed. Don't get mired in high taxes, penalties

Inheriting money is often welcome, but if it’s a retirement account, beneficiaries need to be aware of new rules effective in 2025 or end up potentially paying a steep penalty to the IRS. New rules around inherited individual retirement accounts (IRAs) – both traditional and Roth – were passed in 2019, but the IRS gave Americans a grace period from 2020 through 2024 as the laws were crystallized. In July 2024, the agency issued final regulations, which means they kicked in last year for retirement account ...