Call us at 800-544-0003
We recommend calling a Fidelity Transition Services specialist to help guide you through the process. You should also consult your attorney or tax advisor.
What is an inherited IRA?
Inherited IRAs are specifically designed for individuals who are named as beneficiaries on a retirement account, like an IRA or workplace savings plan, such as a 401(k).
Why open an inherited IRA
- Continue the retirement account's tax-deferred growth
- Receive inherited assets with no immediate income tax impact
- Penalty-free withdrawals at any age
Why choose Fidelity
- Transition Services specialists to help you through the transfer process
- No fees or minimums to open an account1
- $0 commission for online US stock, ETF, and option trades2—plus, a wide range of investment options including mutual funds, stocks, bonds, ETFs, and FDIC-insured CDs
Important rules to know
What if I have inherited a trust or my inherited IRA has multiple beneficiaries?
A Fidelity Transition Services specialist can help guide you through the process—call us at 800-544-0003. For more information on distributions required for these scenarios, see the rules for required distributions.
What should I do if I inherited an IRA that was held at another financial services provider?
If you've inherited an IRA that was held at another financial services provider, you'll need to complete the inheritance process with that provider. Once you've taken ownership of the assets, you could then transfer the assets to Fidelity if you wish.
What should I do if I have inherited a 401(k) or other workplace plan?
This transfer process depends on the type of plan you're inheriting. Our inheritance specialists are ready to help guide you along the way. Begin by giving us a call at 800-835-5095. Learn more about what happens if you inherit a 401(k)
Do I need to pay taxes when I inherit an IRA?
Receiving inherited assets generally has no immediate income tax impact; however, required minimum distributions (RMDs) are taxed as ordinary income for the inheritor in the year they are withdrawn.
For inherited Roth IRAs, the inherited assets generally have no immediate income tax impact and the withdrawals are tax-free as long as the original owner met the 5-year aging requirement.
When do I need to start taking RMDs from the IRA I have inherited?
Generally distributions need to start within a year of inheriting the assets. Required minimum distributions (RMDs) vary by a number of factors, including your relationship to the deceased. Any RMDs due for the original owner must be taken by their deadline to avoid penalties. It is your responsibility to be familiar with the RMD rules that apply to your specific situation. See the rules for required distributions
What are the IRS rules for an inherited IRA?
IRS Publication 590-B explains the rules for handling an inherited IRA.
Investing involves risk, including risk of loss.
No account fees or minimums to open Fidelity retail IRA accounts. Expenses charged by investments (e.g., funds, managed accounts, and certain HSAs), and commissions, interest charges, and other expenses for transactions, may still apply. See Fidelity.com/commissions for further details.
$0.00 commission applies to online U.S. equity trades, exchange-traded funds (ETFs), and options (+ $0.65 per contract fee) in a Fidelity retail account only for Fidelity Brokerage Services LLC retail clients. Sell orders are subject to an activity assessment fee (historically from $0.01 to $0.03 per $1,000 of principal). There is an Options Regulatory Fee that applies to both option buy and sell transactions. The fee is subject to change. Other exclusions and conditions may apply. See Fidelity.com/commissions for details. Employee equity compensation transactions and accounts managed by advisors or intermediaries through Fidelity Institutional® are subject to different commission schedules.
Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request.
Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917