Starting in 2025, certain heirs with inherited individual retirement accounts must take yearly required withdrawals or face a penalty.
But some non-spousal beneficiaries should consider taking distributions sooner, depending on their situation, even if annual withdrawals aren't required, financial experts explain.
"This is about multi-year tax planning" to maximize the benefits of an inherited IRA, said Joel Dickson, global head of advice methodology at Vanguard.
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Here's a breakdown of the upcoming inherited IRA change for 2025 and how heirs can create a tax planning strategy.