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inherited IRA
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- 1Inheriting a $500,000 IRA Now Means Draining It in a Decade▼Inheriting a $500,000 IRA Now Means Draining It in 10 Years. For a Child in Their Peak Earning Years, the Federal Tax Bill Can Top $150,000
Under the SECURE Act's 10-year rule, most non-spouse heirs must empty an inherited IRA within ten years of the owner's death. For a $500,000 account, withdrawals stack on top of a beneficiary's own income, often during peak earning years, pushing the federal tax bill above $150,000. Planners are urging families to reconsider beneficiary choices and Roth conversions.