If you inherit a traditional IRA, it is subject to special rules.

Note. A traditional IRA is included in the estate of the decedent who owned it.

Inherited from spouse. If you inherit a traditional IRA from your deceased spouse, you can generally roll it over into another traditional IRA established for you or you can choose to treat the inherited IRA as your own.

You will be considered to have chosen to treat it as your own if:

• Contributions (including rollover contributions) are made to the inherited IRA, or
• Required distributions are not made from it.

Inherited from someone other than spouse. If you inherit a traditional IRA from anyone other than your deceased spouse, you cannot treat the inherited IRA as your own. This means that contributions (including rollover contributions) cannot be made to the IRA and you cannot roll over any amounts out of the inherited IRA. But, like the original owner, you generally will not owe tax on the assets in the IRA until you receive distributions from it. You must begin receiving distributions from the IRA under the rules for distributions that apply to beneficiaries.

More information. For more information about rollovers, required distributions, and inherited IRAs, see:

• Rollovers, later in this chapter under Can I Move Retirement Plan Assets?,
• When Must I Withdraw IRA Assets? (Required Distributions), later in this chapter under When Can I Withdraw or Use IRA Assets?, and
• The discussion of beneficiaries later in this chapter under When Must I Withdraw IRA Assets? (Required Distributions), and the discussion of inherited IRAs under Are Distributions Taxable?.

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