Beneficiary IRA
For investors who've inherited a retirement account:
- Keep assets tax-deferred
- Pay taxes only upon distribution
- Use the Inherited IRA Tool for assistance
- Enjoy fast, easy withdrawals at age 59½ with free cash management features1
talk to a Beneficiary Services Representative
No
account opening minimums
Why a Beneficiary IRA?
Eligibility information
Anyone who has inherited an IRA or qualified retirement plan
Keep inherited assets tax-deferred
Pay taxes only when distributions are taken
No annual IRA fees and no account minimums
Transaction fees, fund expenses, brokerage commissions, and service fees may apply
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Beneficiary IRA FAQs
What are the eligibility requirements for Beneficiary IRA?
- Must be the beneficiary of an IRA or qualified retirement plan
- Generally, spouse beneficiaries can roll over assets into an IRA of their own, or a Beneficiary IRA. If funds are rolled into a Beneficiary IRA, a spouse beneficiary may need to begin taking annual required minimum distributions, depending on their age and the age of the original account holder.
- Generally, non-spouse beneficiaries, trusts, and estates may roll over assets into a Beneficiary IRA. Annual required minimum distributions will need to be taken, or the account closed by the end of the 5th year following the original account holder’s death.
- Withdrawal options for beneficiaries can be complex. Call the Beneficiary Services team at 1-888-402-0653 for assistance.
How can an inherited retirement account be moved to E*TRADE from Morgan Stanley?
A Beneficiary IRA can be opened by completing the Beneficiary IRA Application, and send the application in with a certified or original death certificate, plus the Beneficiary Distribution Request Form to move the funds from the decedent’s account to the new Beneficiary IRA. The online transfer form can be used to initiate the transfer of funds from another firm to E*TRADE.
Do all of the inherited funds need to be withdrawn by the beneficiary?
An individual does not have to withdraw all of the funds immediately. After the assets have been transferred to a Beneficiary IRA, the beneficiary has multiple options. One option is to withdraw a certain amount of money each year, based on life expectancy. An individual has until December 31st of the year following the death of the original IRA owner to start taking distributions. Another option is to forgo annual distributions, but withdraw all funds within five years. Use the Inherited IRA tool to see guidelines for withdrawal and determine the amount of any annual withdrawals.
What are my options with inherited IRA assets?
There are several options available to Inherited IRA beneficiaries. The options depend on whether the beneficiary is a spouse or non-spouse, and how old the original account holder was when they passed away. Use the Inherited IRA tool to help understand the options.
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Roth IRA5
Tax-free growth potential retirement investing
Pay no income taxes or tax penalties on qualified distributions if you meet certain requirements.
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