Internal Revenue Service reminds taxpayers that inheriting a retirement account, such as an IRA or 401(k), could come with new and often unexpected tax obligations. Changes under recent federal rules now require most non-spouse beneficiaries to withdraw inherited funds within 10 years – a move that could accelerate taxable income and lead to larger IRS bills.

Financial experts say many heirs mistakenly assume inherited retirement accounts are tax-free or can be left untouched for decades. In reality, the SECURE Act and subsequent IRS guidance have tightened requirements, and failure to comply can result in costly penalties.

“Beneficiaries often don’t realize that an inherited IRA is treated very differently than one they opened themselves,” a spokesperson for Clear Start Tax in Irvine, C

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