Key takeaways

• Beneficiaries could start by contacting the plan administrator and gathering required account and estate documents.
• Distribution options and tax rules can differ depending on the account type and whether the beneficiary is a spouse.
• Inherited retirement savings may be transferred, withdrawn, or distributed over time, depending on applicable rules.

A death in the family or among friends can bring both emotional and financial changes. Finding out that you’re inheriting a retirement account is among the transitions that require careful consideration and thoughtful action. Here’s what to know.

Contact the administrator

Whether the account is at a bank, brokerage firm, or managed through an employer-sponsored plan, you should be able to track down which financial institution manages the account you’ve inherited. The executor of the person’s estate should have information about where the account is held, and it’s up to you to reach out to get more details.

Financial institutions usually offer different ways to contact them. Whether you feel most comfortable speaking with someone directly on the phone, via an online chat, or through a contact form, make sure you use the company’s official website or phone number and follow the prompts accordingly.

Using the company’s official channels can help ensure you’re contacting the right institution while avoiding potential fraud. Americans lost nearly $1 billion in 2025 to scammers who impersonated businesses, according to the Federal Trade Commission.¹

Check for additional retirement accounts

If you're the beneficiary of one retirement account, it’s worth checking whether you’re listed on other accounts as well. Executors may not be aware of every account, particularly if retirement savings from a previous employer was overlooked during estate planning. More than a third of Americans (34%) say they may have retirement savings from a previous employer that they’ve lost track of, based on an Empower study.

The executor may be able to help match the person’s former employers with known retirement accounts, while unclaimed property resources and government agencies may help locate accounts that have been forgotten or overlooked.

Read more: How to find old 401(k) accounts

Gather necessary documentation

Requirements for inheriting a retirement account vary by administrator. You’ll typically need to provide information about the original account owner and yourself before assets can be transferred or distributed. Among the important materials you’ll need are:

• Death certificate: It’s useful to get multiple copies of the death certificate since it’s frequently requested by financial institutions and others when settling a person’s affairs. Copies are generally available from a county clerk or other local government agency that handles vital records. Check whether the plan administrator needs a certified copy or has other requirements.
• Account information: The executor of the person’s estate should be able to provide details like the account number, account type, and answers to any security questions that the original account holder established. Having this information readily available can help the process move more quickly.
• Personal information about the person who passed away: You may need to provide specifics like the person’s Social Security number, previous addresses, or other identifying details.
• Marriage certificate (for spousal beneficiaries): If the original account holder was your spouse, you may also have to provide a copy of your marriage certificate.
• Financial institution paperwork: Whether you’re considering a direct trustee-to-trustee transfer or a withdrawal, you’ll need to have the appropriate documents to process the transaction. That may include documents from both the current administrator and the financial institution receiving the assets.

Understand tax implications

Inheriting a retirement account brings several financial decisions and potential trade-offs — especially when it comes to taxes.

The options available depend on factors such as the type of account, the beneficiary’s relationship to the original owner, and whether the original owner had begun taking required minimum distributions (RMDs). The SECURE Act changed distribution rules for many retirement accounts inherited after 2019, including a 10-year rule that generally requires certain beneficiaries to fully distribute an inherited account within 10 years. SECURE 2.0 later changed RMD starting ages and other retirement rules. As a result, when the original account owner died — and the rules that applied at the time — can affect what comes next.

Spousal vs. non-spouse inheritance

If the person inheriting the account is the surviving spouse and a sole beneficiary, they generally have more flexibility in how they handle the inherited funds.²

Depending on the account and circumstances, a spousal beneficiary can generally keep the money as an inherited account and then take distributions based on their own life expectancy, or they’re allowed to roll over the money into an IRA of their own. If the original owner hadn’t already started taking required minimum distributions (RMDs), the spouse is allowed to delay those until that person would have turned 72, though there is a 10-year time limit to empty the account.³

For non-spouses, additional rules may apply for those deemed an “eligible designated beneficiary.”

Distribution requirements, including the 10-year rule, vary based on beneficiary status and other factors. Withdrawals from inherited traditional IRAs are generally subject to ordinary income tax to the extent distributions are taxable. While inherited IRA distributions generally are not subject to the 10% early withdrawal penalty, failure to satisfy required minimum distribution requirements may result in penalties.

Consider how the inheritance fits into your plans

When deciding what to do with an inheritance, you’ll have to consider your personal approach to managing finances: Do you prefer having fewer accounts to manage? Is minimizing taxes a big priority? Are you prioritizing debt repayment first?

Read more: What should I do with an inheritance? Get a Sense Check

A lump sum could help bridge the debt gap: Taking a lump-sum distribution of the retirement assets now — and paying any taxes or possible penalties — could be more helpful if you have a large amount of high-interest debt, such as student loans or car payments. Average monthly auto payments rose 3.2% in September 2026 to a record $821, while the average student loan payment was around $434 in March 2026.^4,5

Consolidating your retirement savings: If the person who died was your spouse, the law gives you the option to name yourself as the owner of the IRA or roll the inherited money into an IRA in your own name.⁶ The same process applies if it’s a Roth IRA (though you have to make sure the account receiving the money is also Roth). An Empower study found that more than four in five Americans (83%) feel more in control when retirement savings is all in one place. Plus, direct rollovers help keep savings growing tax-deferred.

Take regular distributions over time: Depending on the type of inherited retirement account, beneficiary status, and when the original account owner passed away, you may be able to take distributions over time. Certain beneficiaries are required to take annual required minimum distributions (RMDs), while others may be subject to the 10-year rule, which requires the account to be fully distributed within a specified period. Beneficiaries are generally responsible for ensuring applicable RMD requirements and deadlines are met and for reporting taxable distributions on their federal income tax returns.

You may not need the cash right away: An inheritance can come at an overwhelming time, when immediate concerns like planning a funeral or managing household expenses take priority. You may decide to keep the money where it is, but it’s important to complete any required steps with the financial institution and understand the distribution deadlines and other rules that may apply to the inherited account.