Inherited IRAs are specifically designed for retirement plan beneficiaries—those who have inherited an IRA or workplace savings plan, such as a 401(k).
Benefits of an Inherited IRA
- Continue the retirement account's tax-deferred growth
- No immediate income tax impact
- Ability to take distributions over your lifetime
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We recommend calling a Fidelity Inheritor Services specialist to help guide you through the process, in addition to consulting your attorney or tax advisor.
|Earnings||Any earnings grow federal income tax-deferred or tax-free.|
|Fidelity minimum to open||None; transfer any inherited amount.|
|Minimum required distributions (MRDs)1||
Vary by a number of factors, including your relationship to the deceased.
May be based on your age or the deceased’s age at the time of death. Penalties may occur for missed MRDs. Most are required to begin by December 31 of the year following the date of death.
Any MRDs due for the original owner must be taken by their deadlines to avoid penalties.
No tax penalties on withdrawals at any age. Withdrawals may not be rolled back into the inherited account.
Certain decisions must be made within 9 months of the date of death and by December 31 of the year following the date of death.
|Unique advantage for inheritors||Provides the opportunity to continue the tax-advantaged growth of an inherited retirement account.|
|Investment options||A wide range of mutual funds, stocks, bonds, ETFs, and FDIC-insured CDs|
|Support and guidance||
Inheritor Services specialists to help you through the transfer process
Ongoing, one-on-one guidance—in person, online, or over the phone
Research and tools to help you create a long-term plan and choose investments
|Account opening and annual maintenance fees||
*There is no cost to open and no annual fee for Fidelity's Traditional, Roth, SEP, and Rollover IRAs. A $50 account close out fee may apply. Underlying fund expenses, including low balance and short term trading fees still apply. There may also be fees and expenses associated with transacting or holding specific investments.
$7.95 for online U.S. equity trades
Once we receive your notification, we can restrict accounts and the inheritance process can begin.