Fee-Only Fiduciary | Inherited IRA Planning
Inherited IRA Financial Advisor
Financial planning and investment management for beneficiaries dealing with inherited IRAs, Roth IRAs, 401(k)s, and other inherited assets, including withdrawal planning, taxes, and the 10-year rule.
Schedule an Intro Call Services & FeesInheriting an IRA can create decisions that are unfamiliar and time-sensitive. The rules depend on who inherited the account, the type of account, the age and distribution history of the original owner, and other circumstances.
Inclinevest Wealth Management is a fee-only fiduciary financial planning and investment management firm based in Greenwood Village, Colorado. Gabriel Motta, CFP®, MBA, works with individuals and families who have $1 million or more in investable assets and need help incorporating inherited accounts into their broader financial plan.
The goal is to understand the rules, avoid unnecessary tax costs, and develop a withdrawal strategy that fits your income, investments, retirement plans, and long-term goals.
Inherited IRA planning is part of broader inheritance planning
If you inherited more than an IRA, our inheritance and sudden wealth planning page covers how inherited IRAs, Roth accounts, brokerage accounts, real estate, and other assets can fit together.
Inherited Accounts Require Different Planning
An inherited account is not simply another retirement account. Beneficiary rules, required distributions, taxes, and account titling can all affect what you ultimately keep.
Inherited traditional IRAs
Review the applicable distribution rules and develop a withdrawal schedule that fits your income and tax situation.
Inherited Roth IRAs
Understand the distribution rules and how the 10-year deadline affects the timing of withdrawals and continued tax-free growth.
Inherited 401(k)s
Evaluate distribution and rollover options, investment choices, fees, and how the account fits with your other retirement assets.
Inherited brokerage accounts
Review cost basis, investment holdings, diversification, and whether assets should be retained or sold.
Spousal beneficiaries
A surviving spouse generally has options that other beneficiaries do not, including potentially treating the account as their own.
Trust and estate beneficiaries
Trust and estate beneficiaries can face different rules and tax considerations. We coordinate with your CPA and attorney when needed.
The 10-Year Rule and RMDs
Your relationship to the original owner matters
The rules for inherited retirement accounts vary depending on whether you are a surviving spouse, child, another individual beneficiary, or a trust or estate.
Many non-spouse beneficiaries are subject to the 10-year rule and must empty the account by the end of the tenth year following the owner's death. Some beneficiaries may also have annual required distributions during that period.
Our detailed inherited IRA rules guide explains the major beneficiary categories, the 10-year rule, RMD requirements, inherited Roth IRAs, and other important considerations.
Questions to answer first
- Who was the original account owner?
- What was your relationship to the owner?
- Was the original owner already taking RMDs?
- Is the account traditional or Roth?
- When did the owner die?
- What other income will you have over the next 10 years?
- Do you need the inherited assets now?
What to Do After Inheriting an IRA
Before taking a large distribution, start by confirming how the account should be titled and which rules apply to you. A few early decisions can affect the options available later.
Confirm the beneficiary rules
Determine your beneficiary category and whether annual distributions are required in addition to the 10-year deadline.
Open the account correctly
Inherited retirement accounts generally need to be titled appropriately for the beneficiary. Non-spouse beneficiaries generally cannot roll inherited IRA assets into their own IRA.
Review the investments
Inherited accounts may contain investments that no longer make sense for your own goals, risk tolerance, or overall portfolio.
Build a withdrawal plan
Determine when and how much to withdraw based on taxes, income, spending needs, and the rest of your financial plan.
Inherited IRA Tax Planning
Traditional inherited IRA withdrawals are generally taxable as ordinary income. The timing of those withdrawals can therefore matter, particularly when the inherited account is substantial.
Manage tax brackets
Consider withdrawals during years when your taxable income is lower rather than automatically waiting until the final year.
Coordinate with retirement
An inheritance can change your retirement timeline, spending needs, Roth conversion strategy, and other sources of taxable income.
Coordinate with other assets
Consider inherited IRAs alongside brokerage accounts, Roth accounts, real estate, cash, and other inherited property.
Plan beyond the 10-year deadline
The objective is not simply to empty the account on time. The withdrawal strategy should fit your broader financial and tax plan.
What Happens to the Money After You Inherit It?
An inherited IRA is only one part of the decision. Once the account is incorporated into your financial plan, the investments themselves need to make sense alongside everything else you own.
Inclinevest provides ongoing investment management as part of a broader financial planning relationship. We evaluate the inherited account alongside your existing portfolio, retirement accounts, cash reserves, tax situation, and future income needs.
Learn more about our investment philosophy and how we approach portfolio management.
Inherited IRA Planning Is Often Part of a Larger Inheritance
An inheritance may include several different types of assets. A traditional IRA, Roth IRA, taxable brokerage account, real estate, cash, and other property can each have different tax and planning considerations.
Our inheritance and sudden wealth planning service looks at the entire financial picture rather than treating the inherited IRA as an isolated account.
Inherited retirement accounts
Distribution rules, withdrawal timing, taxes, and investment management.
Taxable investments
Cost basis, capital gains, diversification, and portfolio construction.
Real estate and cash
Decisions about selling, retaining, investing, or using inherited assets.
Retirement planning
How the inheritance changes your income needs, savings requirements, and retirement timeline.
Why Work With a Fee-Only Fiduciary?
Inclinevest Wealth Management is an independent, fee-only fiduciary firm focused on ongoing financial planning and investment management.
Paid by you only
No commissions or product sales. Clients pay Inclinevest directly for financial planning and investment management.
Integrated planning
Inherited accounts are considered alongside taxes, investments, retirement, spending, and other financial decisions.
CFP® professional
Planning and investment management are handled by Gabriel Motta, CFP®, MBA.
Independent custody
Investment assets are held at Charles Schwab in your name.
Nationwide service
Most meetings are conducted by video, allowing us to work with clients throughout Colorado and across the United States.
Frequently Asked Questions
Inherited IRA Questions
What should I do with an inherited IRA?
Start by confirming your beneficiary category, the type of account, and whether the original owner had begun required distributions. Then make sure the account is properly titled, review the investments, and develop a withdrawal plan before taking a large distribution.
How does the 10-year rule work?
Many non-spouse beneficiaries must empty an inherited IRA by December 31 of the tenth year after the owner's death. Depending on the circumstances, annual distributions may also be required during that period. The applicable rules depend on the beneficiary and the original owner's circumstances.
Can I roll an inherited IRA into my own IRA?
Generally, only a surviving spouse can treat an inherited IRA as their own. Non-spouse beneficiaries generally need to maintain the account as an inherited IRA and use direct trustee-to-trustee transfers when moving the account.
Do I pay taxes on an inherited IRA?
Withdrawals from a traditional inherited IRA are generally taxable as ordinary income. Qualified withdrawals from an inherited Roth IRA are generally tax-free, although inherited Roth IRAs can still be subject to distribution deadlines.
Should I take distributions evenly over 10 years?
Not necessarily. The appropriate withdrawal schedule depends on your income, tax bracket, other assets, spending needs, and long-term goals. Some beneficiaries may benefit from taking more in lower-income years rather than waiting until the final year.
What happens if I miss a required distribution?
A missed required minimum distribution can result in an excise tax, although the rules provide circumstances under which the tax may be reduced or waived. Review the situation promptly with your financial and tax professionals.
Do you help with other inherited assets?
Yes. Inherited IRAs can be part of a larger inheritance involving taxable investments, real estate, cash, and other assets. See our inheritance and sudden wealth planning page for more information.
Do you work with beneficiaries outside Colorado?
Yes. Inclinevest works with clients throughout Colorado and across the United States through a primarily virtual financial planning and investment management process.
Make a Plan for Your Inherited IRA
If you've inherited an IRA or other retirement account, an intro call can help clarify what you need to address first and whether Inclinevest is a good fit.
Schedule an Intro Call