Inherited an IRA? Avoid These Common Mistakes That Can Cost You

Inherited an IRA? Avoid These Common Mistakes That Can Cost You
Not following certain rules could result in fees and penalties. Dreamstime/TCA
Tribune News Service
Updated:
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By Donna Fuscaldo From Kiplinger’s Personal Finance

If you inherited an individual retirement account (IRA), that windfall may cost you money if you aren’t careful. That’s because there are rules around inherited IRAs to ensure the money in the account is eventually taxed and the IRS gets paid. Run afoul of any of them and you may create a costly tax event, plus you can be hit with fees and penalties.