How Do I Avoid Paying Taxes on an Inherited IRA?

Ramsey Everyday Millionaires

Ramsey Network

Careers, Investing, Business

4.6 • 3.6K Ratings

🗓️ 12 November 2025

⏱️ 3 minutes

🔗️ Recording | iTunes | RSS

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Transcript

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0:00.0	This episode is brought to you by SmartVester.
0:08.0	Connect with an investing pro near you at ramsysolutions.com slash smartvester.
0:13.8	Craig's in San Antonio.
0:15.2	Hey, Craig.
0:15.5	How are you?
0:16.2	I'm doing great.
0:17.1	Thanks for taking my call.
0:18.3	Sure.
0:18.7	How can we help?
0:19.5	Well, I have two inherited retirement accounts.
0:23.7	I've had them for about two years now. All my research and discussions with the financial
0:29.6	institutions that they're with show that I have to withdraw the money in 10 years and that it's
0:37.4	basically a taxable event every time.
0:39.9	And I'm trying to figure out how to minimize the tax hit on this.
0:43.5	I was hoping there'd be something easy like converting it to an IRA of my own or maybe putting
0:50.4	it in my daughter's 529.
0:52.5	But as far as I can tell, it's just all taxable the whole way.
0:56.6	You have gotten correct information, sir. The only thing it could have been done is if it was
1:00.8	converted to a Roth before the person died. Right. It's a traditional. And it's a traditional. That's
1:07.1	why you're under the Biden Secure Act, passed under Joe Biden,
1:13.6	and the Secure Act calls for it to be liquidated within 10 years.
1:19.2	And so, I mean, you could take out a 10th a year and maybe not have a tax-back bracket creep.
	...

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