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Can a parent who inherited an IRA from their deceased spouse,
then leave it to her children

yes

and it stays , tax sheltered

yes

until they retire

no

and withdraw?

yes


See IRS publication 590 and the supplement. The money in a traditional IRA is not taxed until it comes out. If the original owner had a payment plan in place, it continues with the beneficiary. If not then you have 2 choices, begin taking RMDs or lump sum payments within 5 years.

Alan



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