Attorney Natalie Choate advises IRA beneficiaries to do nothing until they've met with a financial adviser who can explain their options."The worst thing to do would be to cash out the plan, put it in your account, and then go see an adviser and say, 'Now what? Before that happens, learn these eight must-know secrets for handling an inherited IRA.'" says Choate, the author of the retirement-plan guide, "Life and Death Planning for Retirement Benefits."ADVISER SEARCH: If you're not sure what to do with that inherited IRA, don't shortchange yourself. Christopher Futcher/Getty Images The money in an inherited IRA must be taken out eventually, except in some cases when the beneficiary is the widow or widower of the deceased.For some reason I get this question a lot in my day job, so I thought I’d provide a little clarification on some of the rules regarding withdrawals from Individual Retirement Arrangements, or IRAs.IRAs were designed to provide an opportunity for folks to save for retirement on a pre-tax, tax-deferred basis.
This can create a “tax-time bomb” in retirement, but I won’t get into that here.In other words, the money grows without having to pay any taxes on the gains.Of course, with an IRA you have to pay the Piper at some point in time.So by the time you actually enter retirement, you may have both taxable and tax-deferred resources.To make the most of your money, does it matter which assets you sell first to create retirement income?