Investing Specialists

Dos and Don'ts for Leaving IRA Assets to Your Loved Ones

Christine Benz

Note: This article is part of Morningstar's February 2014 Tax Relief Week special report. A version of this article appeared Feb. 28, 2013. 

In a previous article, as well as a follow-up column, I waded into the treacherous terrain of inherited IRAs. What happens if a spouse inherits a Roth IRA? What if a nonspouse beneficiary inherits a Traditional IRA and the account owner had already begun taking distributions from it? The permutations--and complications--of this topic are seemingly endless, and some scenarios are definitely better than others.