Page 10 THE SAUGUS ADVOCATE – FriDAy, MArCH 13, 2026 Sa Sa a Sa y Senior enior Sen by Jim Miller How To Navigate Inheriting an IRA From a Parent Dear Savvy Senior, What are the rules regarding inherited IRAs? My brother and I recently inherited our father’s IRA when he passed away late last year and would like to know what we need to do to handle it properly. Oldest Sibling Dear Oldest, I’m sorry to hear about the loss of your father, but you’re smart to be planning ahead. Inheriting an IRA from a parent comes with a unique set of rules. Understanding them can help you make the most of the money you inherit and avoid an unpleasant surprise at tax time. Here are some basics you should know. Setting It Up Many people assume they can roll an inherited IRA into their own IRA, but that’s not allowed for most benefi ciaries. If you inherit an IRA from a parent, sibling, or anyone other than a spouse, you cannot treat the account as your own. Instead, your share must be transferred into a newly established inherited IRA, properly titled in the deceased owner’s name—for example, John Smith, deceased, for the benefi t of Jane Smith. If your father named multiple benefi ciaries, the IRA can be split into separate inherited accounts. This allows each benefi - ciary to manage withdrawals independently, as if they were the sole benefi ciary. You can open an inherited IRA at most banks or brokerage fi rms, although the simplest option is often to set it up with the firm that already holds your father’s account. The 10-Year Withdrawal Rule Under the SECURE Act, signed into law in December 2019, most non-spouse beneficiaries must withdraw all the money from an inherited IRA by the end of the 10th year following the original owner’s death. This rule applies if the owner died in 2020 or later. If your father had already begun taking required minimum distributions (RMDs), you generally must continue taking annual RMDs while also emptying the account within 10 years. If he had not yet started RMDs, annual withdrawals aren’t required, as long as the entire IRA is withdrawn by the end of the 10-year period. You may take withdrawals faster if you choose, but distributions from a traditional IRA are taxable as ordinary income in the year taken. Roth IRA withdrawals, however, are usually tax-free, provided the account has been open at least fi ve years. If you fail to take a required RMD, or don’t withdraw enough, the penalty is 25 percent of the amount you should have taken. That penalty can be reduced to 10 percent if the mistake is corrected within two years. Exceptions to the Rule Several benefi ciaries are exempt from the 10-year rule, including a surviving spouse, a minor child, a disabled or chronically ill benefi - ciary, or someone who is within 10 years of age of the original IRA owner. These beneficiaries may be allowed to stretch withdrawals over a longer period. Minimize Your Taxes As tempting as it may be to cash out an inherited IRA in a lump sum, or take large withdrawals over just a few years, proceed carefully. Doing so could trigger a hefty tax bill. Withdrawals from a traditional IRA are generally taxed as income at your regular tax rate. For many heirs, spreading distributions over the 10-year period can help manage taxes and reduce the risk of being pushed into a higher tax bracket. Other strategies may make sense if your income fl uctuates or you’re nearing retirement. To help navigate these decisions, consider working with a fi - nancial advisor. If you don’t have one, you can fi nd a fee-only, fi duciary fi nancial planner through the National Association of Personal Financial Advisors at napfa.org. Send your questions or comments to questions@savvysenior.org, or to Savvy Senior, P.O. Box 5443, Norman, OK 73070. nir ior I Saugus Gardens in the Winter Here’s what’s blooming in town this week to make your walks more enjoyable By Laura Eisener guess the balmy weather we enjoyed Sunday through Tuesday made us all believe that spring will come! As the snow melts from the garden, it reveals snowdrops just beginning to bloom, and the sprouting foliage of several other early spring bulbs, such as hyacinths and daffodils. Meanwhile several bulbs that will be blooming in our gardens in mid-April to May are available in florists’ shops and markets, so we can savor their colorful blossoms now and then plant them outside in the garden when the soil warms, so they can be enjoyed for many springs afterward. Pussy willow catkins (Salix caprea, S. discolor and others) are starting to open on shrubs in Saugus now, and several cultivars of Asian witch hazel (Hamamelis intermedia) have opened their yellow, orange or reddish blossoms. Monday was the fi rst day I thought it was actually comfortable to sit outside on the front porch steps. Unlike the past several weeks, there were many more people walking past, not only the dogwalkers, who often had to dodge the snow piles that are gradually receding, but others who have perhaps not taken a stroll through the neighborhood in several months. As people walk around and check out their gardens, they are seeing some spring “fi rsts,” not only the fl owers I have mentioned but the first pollinators, including at least one honeybee. Several birds that I had not seen all winter are making appearances, such as the group of red-winged blackbirds (Agelaius phoeniceus) that hovered around the Saugus River near Hamilton Street when we went out for coff ee Sunday morning. They were calling to each other; the males often raise their wing feathers to show off their GARDENS | SEE PAGE 11 A clump of snowdrops is blooming in Lynnhurst just a day after the snow that covered them melted! (Photo courtesy of Laura Eisener) An amaryllis blooms in Nancy Prag’s home in East Saugus. (Photo courtesy of Nancy Prag)
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