An inherited IRA can give a surviving spouse something valuable: choices. Unfortunately, those choices come with different tax consequences, withdrawal rules, and deadlines. Making a quick decision without understanding them can create an expensive retirement headache.
When a husband or wife dies with a traditional or Roth IRA, the surviving spouse generally has more flexibility than other beneficiaries. The spouse can often take ownership of the account, keep it as an inherited IRA, or move the money into another eligible retirement account.
