Inherited IRAs: When Grief Meets Paperwork 

You Inherited an IRA. Now What?

Inheriting an IRA should feel like a gift from your parents—a final act of care and provision. But for many people, it becomes a confusing, stressful maze of paperwork, phone calls, tax questions, and unanswered emails.

We recently worked with a woman—we’ll call her Susan—who inherited retirement assets from both of her parents. What followed was six months of frustration, stalled progress, and a growing sense of overwhelm.

By the time Susan reached out, she felt stuck, anxious, and worried she was “doing something wrong.” She wasn’t. She just needed help.

The Hidden Complexities of Inherited IRAs

Susan’s experience is far more common than most people realize. Here’s what she was up against:

  1. “Where is all the money?”

Her parents had accumulated assets over decades—multiple accounts, different custodians, and even individual stock certificates. Before any planning could begin, we had to find everything.

  1. Multiple companies, multiple rules

Each firm had its own process, its own forms, and its own timeline. Some required mailed paperwork. Others had online portals that only worked halfway.

  1. Computershare and physical stock certificates

Several stocks, including shares of AT&T, ExxonMobil, and IBM, were held in stock certificates, and dealing with Computershare required:

  1. Original death certificates
  2. Stock-specific transfer forms
  3. Medallion signature guarantees (a frequent roadblock many banks no longer offer)

This alone can stop someone in their tracks.

  1. “Do I have to take money out right now?”

Susan believed she needed to withdraw the funds—or face an immediate penalty. In reality, as a non-spouse beneficiary under current SECURE Act rules, she generally has up to 10 years to fully distribute the inherited IRA.

Understanding that timeline changed everything.

Key Questions Every Inherited IRA Beneficiary Asks

Should I take money out immediately?

Not necessarily. While the entire inherited IRA must typically be emptied within 10 years, how and when withdrawals happen should be driven by tax strategy—not panic.

Can inherited IRAs be combined with existing accounts?

You cannot merge inherited IRAs into your own IRA. They must remain titled as inherited accounts. However, to simplify management, you can consolidate inherited IRAs from the same decedent.

What if there are siblings involved?

Susan has a sister, and both have children listed as contingent beneficiaries. This adds another layer:

  1. Each sibling needs appropriately titled inherited accounts
  2. Beneficiary designations must reflect future heirs
  3. Estate and tax planning should align, not conflict

When this is handled correctly up front, it prevents family tension and costly mistakes down the road.

Smart Tax Strategies for a Large Inheritance

One of Susan’s biggest fears was taxes—and for good reason. Poorly timed withdrawals can push beneficiaries into higher tax brackets.

Here are some of the strategies we explored:

  1. Spreading distributions over multiple years to smooth tax impact
  2. Coordinating IRA withdrawals with income, deductions, and charitable giving
  3. Planning around Social Security, Medicare premiums, and future earning years
  4. Aligning investment strategy with the 10-year distribution window

The result? A clear roadmap instead of constant second-guessing.

From Six Months of Stress to One Month of Progress

Susan spent over six months trying to navigate this alone—and made almost no progress.

Once we worked together:

  1. All accounts were located and properly transferred
  2. Stock certificates were handled correctly
  3. A tax-efficient withdrawal plan was put in place
  4. Beneficiary structures were clarified for future generations

And most importantly, her stress disappeared.

The Real Value of an Expert Advisor

Inherited IRAs aren’t just about money. They’re about family, legacy, and peace of mind during an already emotional season.

The right advisor doesn’t just move accounts—they:

  1. Create clarity
  2. Reduce taxes
  3. Prevent costly mistakes
  4. Bring calm to an overwhelming process

If you’ve recently inherited an IRA or expect to in the future, you don’t have to figure this out alone. The rules are complex—but with the right guidance, the path forward doesn’t have to be.

And sometimes, the most significant return on investment isn’t financial at all—it’s relief.

If you are looking for more clarity in regard to an inherited IRA or other wealth transfers, we can help. Give us a call or email to make an appointment.

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