Inherited (Beneficiary) IRA
For investors who've inherited a retirement account:
- Keep assets tax-deferred
- Pay taxes generally only upon distribution
- Use the Inherited IRA Tool for assistance
- Enjoy fast, easy withdrawals at age 59½ with free cash management features2
talk to a Beneficiary Services Representative
No
account opening minimums
Get up to $10,000 for a limited time1
Open and fund a new eligible retirement account with a qualifying deposit by July 31, 2025. Learn how
Terms apply. Use promo code: RETIRE25
Why an Inherited IRA?
Eligibility information
Generally, anyone who has inherited an IRA or qualified retirement plan
Keep inherited assets tax-deferred
Pay taxes generally only when distributions are taken
No annual IRA fees and no account minimums
Transaction fees, fund expenses, brokerage commissions, and service fees may apply
Access to a wide range of investment choices
Choose from a wide range of stocks, bonds, options, 7,000+ mutual funds, and ETFs
Trade more, pay less
With E*TRADE from Morgan Stanley, you pay $0 commissions for online US-listed stock, ETF, mutual fund, and options trades. Here’s a quick overview of our clear, competitive per-trade pricing.1
Inherited IRA FAQs
What are the eligibility requirements for an Inherited 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 an Inherited IRA. If funds are rolled into an Inherited 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, may roll over assets into an Inherited IRA. Your inherited IRA will be subject to the after-death required minimum distribution rules, which, depending on a number of factors, may require you to (a) take annual distributions each year for a certain period of time, (b) take a distribution of the entire value of the account no later than the end of the 10th year following the original account holder's death or (c) take a distribution of the entire value of the account no later than the end of 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.
What are the steps to inherit an E*TRADE IRA as a beneficiary?
We extend our heartfelt condolences. We're committed to supporting you every step of the way.
There are 3 simple steps to take to inherit an existing E*TRADE IRA: 1) notify us of a death to start the inheritance process by calling our Beneficiary Services team at 1-888-402-0653, 2) open the same type of IRA account you're inheriting by completing the Inherited IRA Application and submit a certified or original death certificate, and 3) once your new Inherited IRA account is open and we've verified the death certificate, the inherited assets will be moved to your IRA.
How can an outside inherited retirement account be moved to E*TRADE from Morgan Stanley?
An Inherited IRA can be opened online by completing and returning the Inherited IRA Application Once the Inherited IRA is open, 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 an Inherited IRA, the beneficiary may have multiple options, but they will still be subject to the required minimum distribution (RMD) rules. 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.
Explore similar accounts
Traditional IRA
You may be eligible to make income tax deductible contributions
Earnings potentially grow tax-deferred until you withdraw them in retirement.
Roth IRA5
Tax-free growth potential retirement investing
Pay no income taxes or tax penalties on qualified distributions if you meet certain requirements.
Core Portfolios
Automated investment management
Get a diversified portfolio that’s monitored and managed for a low annual advisory fee of 0.30% and $500 minimum.7
Get up to $10,000 for a limited time1
Open and fund a new eligible retirement account with a qualifying deposit by July 31, 2025. Learn how
Terms apply. Use promo code: RETIRE25