What's the Difference Between an Inherited IRA and Your Own IRA?

An inherited IRA has very different rules from a regular IRA you opened yourself, particularly around when you have to take withdrawals. With your own IRA, you can leave the money in the account until you reach age 73, when required minimum distributions begin, and you can continue contributing as long as you have earned income. With an inherited IRA, you generally cannot make additional contributions, and under the SECURE Act, most non-spouse beneficiaries who inherited after 2019 must empty the account within 10 years of the original owner's death. Surviving spouses have more flexible options — they can treat the inherited IRA as their own, roll it into their own IRA, or take required minimum distributions based on their own age. Withdrawals from an inherited traditional IRA are taxable as ordinary income, just as they would be with your own IRA.