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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

inherited IRA  

Definition 1.

An IRA that becomes the property of someone other than the spouse of the deceased owner of the IRA. Inherited IRAs are subject to special regulations. The beneficiary receives the distribution by December 31 of the fifth year after the death of the owner. In addition, this type of IRA does not allow for tax deduction contributions and rollovers to and from other IRAs. The IRA can also be paid as an annuity or in periodic installments not extending beyond the beneficiary's life expectancy.
 
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